Mylan has made an offer to buy Dublin, Ireland-based Perrigo for more than $28 billion, as the current acquisitions trend in pharma continues at pace.
The company said it would pay $205 in a combination of cash and Mylan stock for each Perrigo share, which represents a greater than 25% premium to the latter’s stock price as of April 3, 2015.
According to Mylan, the marriage of these “highly complementary businesses” would create “a diversified, global pharmaceutical leader with an unmatched commercial and operating platform and a unique, one-of-a-kind profile”.
In a letter to Perrigo’s chairman, Mylan chief Robert Coury noted that the proposed transaction “makes compelling strategic sense” and would result in a combined company with “a very strong financial profile”, with annual sales of more than $15 billion.
Perrigo confirmed receipt of the offer, and noted that its board will now meet to discuss the proposal.
Mylan’s move comes just months after it relocated its headquarters from the US to The Netherlands as part of its purchase of Abbott’s main branded generics business, thereby considerably cutting its tax bill.