Teva’s Mylan bid set to shake up industry

April 22, 2015

Teva Pharmaceutical’s unsolicited $40 billion offer to acquire Mylan N.V. is expected to shake up the pharmaceutical industry, especially in the areas of generic and specialty drugs. A Teva acquisition of Mylan would be the biggest health care deal of the year so far and the largest acquisition ever proposed by an Israeli company, according to S.&P. Capital IQ, The New York Times reported.

Teva Pharmaceutical’s unsolicited $40 billion offer to acquire Mylan N.V. is expected to shake up the pharmaceutical industry, especially in the areas of generic and specialty drugs.

A Teva acquisition of Mylan would be the biggest healthcare deal of the year so far and the largest acquisition ever proposed by an Israeli company, according to S.&P. Capital IQ, The New York Times reported.

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“The proposed combination of Teva and Mylan would create a leading company in the pharmaceutical industry, well positioned to transform the global generics space,” according to a statement from Teva. “The combined company would leverage its significantly more efficient and advanced infrastructure, with enhanced scale, production network, end-to-end product portfolio, commercialization capabilities and geographic reach.”

Teva’s proposal also provides Mylan stockholders with “a more attractive alternative” to Mylan’s proposed acquisition of Perrigo Company, according to the statement. After the Teva move, Perrigo rejected Mylan’s $29 billion takeover bid.

The Teva-Mylan transaction is valued at $82.00 per Mylan share, with the consideration to be comprised of approximately 50% cash and 50% stock.

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If the acquisition goes through, the combined company would focus on complex technologies, more durable and sustainable products and specialty drug development. “As a result, the combined company would have a unique and differentiated business model, addressing significant trends and discontinuities prevailing today among patients and healthcare systems around the world.”

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