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Shares of drugmaker Mylan are going wild after getting a buyout proposal
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Shares of Mylan pharmaceuticals spiked by more than 10% in pre-market trading after it received a buyout proposal from Teva pharmaceuticals.
Teva proposed to buy Mylan for $82 per share in cash and stock in a deal worth about $40 billion, according to a statement.
Erez Vigodman, CEO of Teva, said:
“Our proposal would provide Teva stockholders with very attractive strategic and financial benefits and Mylan stockholders with a substantial premium and immediate value for their shares, as well as the opportunity to participate in the significant upside potential of the combined company – one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry."
An earlier report from Bloomberg suggested the deal would be announced today.
Teva shares rose by more than 3% in pre-market trading.
Teva's statement also said the proposal offers a better alternative to Mylan’s proposed acquisition of Perrigo, announced earlier this month. Mylan offered to buy Perrigo for $205 per share in a deal worth $28.9 billion.
The combined company will have pro forma revenues of around $30 billion, Teva said in the statement.
Mylan’s chairman Robert Coury had released a statement last week on initial reports of the deal, calling them "media speculation," and saying the company "is fully committed to its stand-alone strategy, including its proposal to acquire Perrigo, and today's speculation has no impact whatsoever on this strategy."
There have already been a number of huge buyout offers and deals among pharmaceuticals and biotechs this year.
And late last month, Teva Pharmaceuticals announced it will acquire Auspex Pharmaceuticals at $101 per share in cash.
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