Recent news of Perrigo’s completed acquisition of over-the-counter brands in Europe was overshadowed by the zeal of Mylan’s re-occurring hostile takeover bid. In the wake of Perrigo announcing the $200 million cash deal with GSK, Mylan’s shareholders approved the continued pursuit of Perrigo.
Apparently, the generic drugmaker hopes to push ahead with a formal offer soon. Perrigo has resisted repeated overtures from Mylan as recently as last month. In a statement, Perrigo said it is confident that its shareholders will reject Mylan’s offer.
“Our views of Mylan’s offer to Perrigo shareholders have always been, and will continue to be, based on our Board’s careful reflection of the value available to Perrigo shareholders, and do not depend on the limited choices that Mylan has allowed its shareholders to consider,” said Joseph C. Papa, Chairman, President and CEO.
“Following extensive discussions with our shareholders, we are confident that most of them believe that Mylan’s offer substantially undervalues Perrigo and would dilute our growth profile and superior valuation. The offer also would subject Perrigo shareholders to Mylan’s highly troubling governance approach,” he stated.
A combination of the two companies would create one of the world’s largest makers of generic and over-the-counter medications.
In April, Mylan made an offer to Perrigo of $34.1 billion in cash and stock. However, Dublin-based Perrigo rejected the offer. Teva Pharmaceutical Industries has also had its eye on Perrigo, but its interests have seemingly cooled after purchasing the generics business of Allergan for $40.5 billion.
Mylan, formerly based in Canonsburg, Pennsylvania, reincorporated in the Netherlands in February as part of an acquisition that lowered its tax liabilities. Perrigo made a similar move in December 2013 when it moved its base to Dublin.