In case you haven’t had time to follow the Mylan-Teva, Perrigo-Mylan saga of
the past few weeks, we compiled a quick set of facts for your speed read needs:
Table: Perrigo & Mylan versus Mylan & Teva:
Perrigo
Mylan
Teva
Fast Fact
World’s largest manufacturer of OTC healthcare products for the store brand market
Holds the number one ranking
in the U.S. generics prescription market in terms of sales
Teva is the world’s largest generic medicines producer
Annual Revenues (2014)
$4.06 billion
$7.72 billion
$20.27 billion
Size of their generics business
$927.1 million
$6.46 billion
$9.8 billion
Top products
Tysbari®
Epi-Pen®
Copaxone®
(royalty share: 18% up to $2 billion in sales)
($1 billion)
($4.24 billion)
2013 Acquisitions
DEC-2013: Elan Pharmaceuticals
FEB-2013: Agila Specialties
$9.5 billion
$1.75 billion
(Tax inversion)
2014 Acquisitions
NOV-2014: Omega Pharma $4.5 billion
JUL-2014: Abbott’s non-US generics business $5.3
billion (tax inversion)
SEPT-2014: Arixtra® rights
$300 million
2015 Acquisitions
FEB-2015:
Famy Care
MAR-2015:
Auspex
$800 million
$3.2 billion
April 2015
Perrigo & Mylan
Mylan & Teva
Perrigo has rejected 3 takeover offers
from Mylan.
They first valued Perrigo at just under $29 billion, the next at $33 billion and the last one at $35.6 billion.
Mylan rejected Teva’s unsolicited $40 billion bid for Mylan, 50% in
cash and 50% in stock.
Teva valued Mylan
at $82/share.
If Mylan’s takeover of Perrigo fails, there is a high possibility that Teva, in its quest for growth, will eventually acquire Mylan. However, the highlight of this month long saga, has been the over 3,000 word letter Mylan’s Executive Chairman wrote when rejecting the Teva deal (Mylan internally refers to Teva stock as “toilet paper”).
Mylan’s Board answered that financially, Teva’s offer, does not even come close to qualify as a proposal worth pursuing (starting point of discussion - excess of $100 per share). Other concerns were also cited such as: Mylan having a
substantial business in India, while Teva has a limited presence, and has been disparaging about India’s products and culture. In addition, should the deal come through, the massive overlapping positions would create significant antitrust concerns.
On the other hand, here are some comments from the response of Mylan.
Take your pick on what you think hurt the most:
* “Mylan would give Teva severe indigestion”.
* We believe Teva shares to be “low-quality and high-risk currency”.
* Teva is offering Mylan shareholders to “take stock of a poorly performing troubled company in a combination that lacks industrial logic and is a terrible cultural fit”.
* There is “persistent turnover and turmoil amongst the Teva leadership and Board”, “strategic confusion” and Teva’s under performance is “directly attributed to its “dysfunctional” culture”.
* The Board was described “like a Nuthouse” and ran the only CEO with pharmaceutical experience out of town within 18 months of being on the job
* “Do not wish to make Teva’s problems Mylan’s problems”
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