Health Care and Manufacturing

Perrigo rejects latest offer from rival drug maker

April 27, 2015
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Perrigo makes over the counter and generic prescription drugs. Photo via fb.com

Over-the-counter medicine maker Perrigo is rejecting the latest unsolicited acquisition offer from a rival drug maker.

Dublin-based Perrigo, which operates its North American base in Allegan, rejected the deal Friday afternoon after Mylan in the Netherlands announced its offer Friday morning to acquire all of the outstanding shares of Perrigo for $60 per share in cash and 2.2 Mylan ordinary shares for each ordinary Perrigo share.

"Mylan has today begun a legally-binding process under the Irish Takeover Rules to commence its offer for Perrigo, demonstrating our commitment to making this compelling combination a reality,” said Robert Coury, executive chairman, Mylan.

He added, "We are taking this next critically important step, which begins the clock under the rigid timeframe set by the Irish Takeover Rules, in order to continue to ensure clarity and certainty around our intentions for investors, particularly in light of the strong market reaction to this combination and demands from investors for us to take this step.”

Mylan said following the transaction Mylan shareholders would own about 61.8 percent of the outstanding Mylan ordinary shares on a fully diluted basis, and former Perrigo shareholders would own about 38.2 percent of the outstanding Mylan ordinary shares on a fully diluted basis.

In response, Perrigo said, “Shareholders are strongly advised to take no action in relation to the offer.”

Mylan’s previous offer

The Perrigo board previously concluded that Mylan's unsolicited acquisition proposal of $205 per share, which was made on April 8, significantly undervalued the company and its growth prospects and was not in the best interests of Perrigo's shareholders, rejecting the offer last week.

“Today's announcement from Mylan proposes a price that is lower than the previously rejected proposal,” Perrigo noted.

"Based on Mylan's unaffected price of $55.31 per share on March 10, 2015, the last day of trading prior to widespread public speculation that Teva was considering an offer for Mylan, the value of the offer is $181.67 per Perrigo share."

Mylan not backing down

Mylan has committed itself to acquiring Perrigo and does not plan to back down.

"While we are disappointed by the decision of the Perrigo board to reject our proposal without entering into discussions thus far, we are still hopeful and confident that we can engage with their board about our offer and how to best bring our organizations together,” the company’s statement reads.

"We remain steadfast in our offer to acquire Perrigo, given the substantial opportunities we anticipate it will create for our company, shareholders and other stakeholders. We will not be distracted from the pursuit of this exciting, value-creating combination."

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