Mylan to buy Swedish drugmaker Meda in $7.2 billion deal
By Natalie Grover
(Reuters) - Generic drugmaker Mylan NV (MYL.O: Quote) said it would acquire Meda AB MEDAa.ST in a $7.2 billion cash-and-stock deal in its third attempt to buy the Swedish company.
The move comes three months after Mylan gave up on its seven-month-long pursuit of smaller rival Perrigo (PRGO.N: Quote).
Mylan's stock fell about 8 pct in extended trading, after it announced the 165 Swedish crowns per share offer. That works out to be nearly twice Meda's last traded price, which had some analysts questioning the high premium.
"The deal may be earnings accretive, but Mylan is paying a huge premium in a deteriorating market," Clinical Assistant Professor Erik Gordon, from the Ross School of Business at the University of Michigan, told Reuters.
The announcement of the takeover came alongside the company's fourth-quarter results, which underwhelmed analysts' estimates both in terms of profit and revenue. Mylan is still on the prowl for deals, Chief Executive Heather Bresch indicated over a post-earnings conference call with analysts.
Meda makes branded, over-the-counter and generic drugs. It already handles European sales of EpiPen, Mylan's emergency shot for severe allergic reactions and its biggest selling branded product.
Mylan said the offer, recommended by Meda's board, valued the company at $9.9 billion, including debt.
Meda's two largest shareholders, who own about 30 percent of the specialty pharmaceutical's outstanding shares, have accepted the offer, Mylan added. Continued...