Dutch drugmaker Mylan says it will launch a $27.14 billion offer for Irish generic drug and ingredients maker Perrigo. Perrigo has already turned down several offers from Mylan, so Mylan says it will take the latest offer directly to the company’s shareholders. The company said in August that it was confident its shareholders would reject Mylan’s overture.
The cash-and-stock bid values Perrigo at about $185.52 per share. That’s a premium of about four percent to the Friday closing price of Perrigo Co. shares, and the stock added $2.43 to $181.23 in midday trading Tuesday. Mylan wants to combine its prescription generic drug business with Perrigo’s business in over-the-counter products like vitamins, nutritional products and infant formula, and it says the two companies would have about $15 billion in combined annual revenue.
Perrigo did not immediately respond to a request for comment to Mylan’s announcement.
Mylan offered to buy Perrigo for $205 per share in April and later increased its offer to $232.23 per share, or $34.1 billion. Perrigo said that cash-and-stock offer wasn’t worth as much as Mylan said. At the time Mylan’s stock price was elevated as an even larger generic drug company, Teva Pharmaceutical Industries Ltd., was trying to buy Mylan. Mylan fended off Teva, which decided to buy Allergan PLC’s generic drug business for $40.5 billion instead.