Israeli drug giant Teva Pharmaceutical Industries (TEVA) dropped its hostile bid for Mylan (MYL) and instead agreed to buy the global generic-drug business of Allergan (AGN) Monday. Teva’s and Allergan’s stocks both jumped, while Mylan’s plunged. Teva agreed to pay $33.75 billion in cash and $6.75 billion in stock for Allergan’s Actavis business, with Allergan retaining 50% of the future money from Teva’s generic lenalidomide, better known as
Teva Pharmaceutical (TEVA) confirmed reports Monday that it will buy Allergan’s (AGN) generic drugs business for $40.5 billion and dropped its hostile takeover bid for Mylan Pharmaceuticals (MYL). Under the deal, Teva will pay $33.75 billion in cash and $6.75 billion in shares. The deal is expected to close in Q1 2016. Teva said the buyout will boost adjusted earnings per share by double-digits in 2016. The deal will allow Allergan to focus on its
Shares of generic drug maker Perrigo (PRGO) rose as much as 3.1% Tuesday after BMO Capital Markets launched coverage with an outperform rating, saying Perrigo stock is undervalued regardless of whether Mylan (MYL) succeeds in acquiring the company. Analyst David Maris wrote that trends favor Perrigo’s business model, which is divided between private-label over-the-counter and prescription generic drugs. “The continued movement of consumers from