Dive Brief:
- Perrigo has turned down Mylan's latest offer of $232.23 per share, including $75 per share in cash and 2.3 Mylan shares in exchange for one share of Perrigo.
- Perrigo thinks that Mylan's stock price assumptions are too high and therefore distort the offer.
- Perrigo contends that when everything is factored in, Mylan's last two offers have been lower than the original $205 per share offer.
Dive Insight:
It's a game of Serial Pursuit, with Mylan pursuing Perrigo and Teva pursuing Mylan. And in each case, the pursuer is being spurned.
With respect to Mylan's bid for Perrigo, Chairman Robert Coury has stated that a "win-win" outcome is achievable, even as it pushes Teva away. Meanwhile, Teva sent another letter to Mylan this week telling Mylan to stop "mudslinging" as it tries to avoid a merger with Teva. Analysts and onlookers are confident that if a deal does not happen between Perrgio and Mylan, then Mylan will have less recourse against an eventual merger with Teva.
At the same time, there are numerous anti-trust issues at play as a merger between any of these two companies represents an unprecedented level of consolidation in the generics industry—and in each case, both Teva and Mylan are aggressively and preemptively addressing antitrust issues. Stay tuned.