Perrigo's not opposed to striking a pact with Mylan--as long as the price is right. The bad news for its suitor, though, is that right now, it's nowhere close.
Last year, Mylan forked over millions to cover its top execs' tax liability on its deal with Abbott Laboratories, which shifted its tax domicile to Europe. Investors weren't so lucky--and now, they may take another tax hit if Mylan joins up with suitor Teva.
So far, Perrigo hasn't seemed too keen on selling itself to generics giant Mylan. It's rejected the U.S. drugmaker three times. But word has it that Perrigo tried to link arms with another generics giant on the block--and that's Mylan suitor Teva.
Mylan Chairman Robert Coury has said more than once that Mylan isn't interested in selling itself to Teva. A deal for Mylan to buy its pursuer, though? That's a different story.
Late last month, Teva kicked off a roadshow to meet shareholders of its buyout target, Mylan, and find out what price it'll need to put forth to convince them to support a deal. As Mylan starts up its own roadshow, its message is clear: It's categorically opposed to a tie-up with the Israeli drugmaker, and investors can't force one, either.
Mylan Chairman Robert Coury has said loud and clear that he doesn't think a tie-up with generics rival Teva is a good idea. But he's not the only one who wants his voice heard.
Teva Pharmaceutical Industries said it has completed its $3.2 billion acquisition of Auspex Pharmaceuticals, a U.S.-based biopharmaceutical company specializing in development of nervous-system therapies.
Mylan may be demanding more than $100 per share from suitor Teva if it wants to talk takeover. But for itself--and its executives--its expectations aren't nearly that high.
Since before Teva even made its now-rejected $40 billion offer to buy Mylan, its target's exec chairman, Robert Coury, has been pretty down on the idea, citing a potential culture clash between the two companies. While Teva CEO Erez Vigodman has said he thinks they'd get along just fine, the rival drugmakers do have a few big differences between them--including their approach to executive compensation.
Hold it right there, Mylan, Teva said in a Wednesday letter to that company's executive chairman. A couple days after receiving a scathing rejection to its $40 billion buyout bid, the Israeli drugmaker has a few things it wants to set straight.