Some analysts have never been all that keen on Mylan's hostile quest for Perrigo. But some forthcoming obstacles for Perrigo's businesses now have at least one questioning the deal's logic even further.
Generic makers have had just about enough with branded drugmakers tweaking aging meds to hold on to sales, with some arguing in court that the move is inherently anticompetitive. Now the FTC is wading into the debate, saying that pharma companies that make small changes to brand-name products to ward off competition from cheaper copycats may be violating antitrust laws.
Mylan and its hostile takeover target, Perrigo, have been trading lawsuits in the U.S., but now they've taken their legal battle across the ocean.
Mylan has been pumping up its EpiPen marketing on multiple fronts, helping make it the go-to therapy for those with severe allergic reactions. But now, with new rivals advancing, the company will be relying on its years of branding to help it weather the competitive storm.
Mylan and Perrigo's warring words have turned into warring lawsuits. After Perrigo sued last week to block Mylan's proposed takeover, saying the would-be buyer had misled shareholders, Mylan countersued, alleging its own set of "false and misleading statements."
Perrigo CEO Joseph Papa has cautioned investors against taking up an offer from hostile suitor Mylan. But Papa is already a Mylan shareholder himself.
Surprise, surprise. Perrigo, which has staunchly opposed suitor Mylan's buyout offers since the company first expressed interest back in April, has officially advised shareholders to shoot down the would-be buyer's proposal.
It's official: Mylan has taken its Perrigo buyout offer to the Irish company's shareholders. But plenty of industry-watchers are still opposed to the idea.
In an unprecedented back down on the patent front in India, industry advocate the Indian Pharmaceutical Alliance and staunch challenger Natco Pharmaceuticals have dropped opposition to the patent application for Gilead's Sovaldi (sofosbuvir) as a unique licensing and manufacturing pact appears solidly backed by all generics firms.
All eyes are on Perrigo's investors, who will have to decide whether to accept Mylan's offer when the wannabe acquirer takes it to them next Monday. And Israeli businessman Mori Arkin, for one, plans to deliver a resounding "no."