Abbott gets involved in M&A drama, backs Perrigo buy
- Abbott, which owns 14.5% of Mylan, says it will back Mylan's efforts to buy Perigo.
- The announcement means Mylan's bid has the backing of its largest shareholder.
- Mylan is fighting off its own takeover bid from Teva, and the Perigo purchase may help in that fight.
Abbott's swap with Mylan added a nice chunk of international business to Mylan's portfolio, including Abbott's drug business in developed countries outside of the United States (U.S.). This purchase also allowed Mylan to complete a tax-inversion and gain some tax benefits as a Dutch corporation. While this strategy may have some positive tax benefits, as well as positive portfolio diversification-related business benefits.
However, there's a challenge associated with Mylan's new status. Teva has been atempting to buy Mylan, with the goal of becoming a generics powerhouse. While Mylan has accussed Teva of skirting anti-trust laws, Teva's comeback is that Mylan functions like a Dutch company when it's expedient, yet wants the protection afforded U.S. companies.
And then there's the ongoing Perrigo challenge. Perrigo is standing its ground against being acquired by Mylan; however, for now, Mylan will continues it acquisition efforts.
- Fierce Pharma Big Mylan shareholder Abbott backs Mylan's Perrigo buy