Earlier this month, Perrigo shareholders spurned a hostile buyout attempt from Mylan. And now, the Netherlands-based company may have to go up against its former target if it wants to pursue a replacement buy.
After finally turning back the long-running takeover attempt by Mylan, Perrigo assured shareholders they could expect "industry-leading future growth prospects." In its first move toward delivering on that promise, the OTC specialist said today it will buy the U.S. rights to AstraZeneca's Crohn's disease drug Entocort.
Pharma's longest-running takeover battle of the year has come to an end--and not in pursuer Mylan's favor. The company has failed to garner the support necessary for a takeover of Perrigo, a target it's been pursuing since April. As of 8 a.m. Friday, about 40% of Perrigo's shares had been tendered, Mylan said, missing the 50% threshold necessary for it to push forward with the transaction.
Mylan has swept aside one of the legal hurdles set up by Perrigo, which has been fighting on two continents to try to derail Mylan's takeover of the generics competitor.
Perrigo has railed repeatedly against Mylan's hostile takeover bid and introduced massive cost-cuts and streamlining efforts to try to keep its shareholders loyal. Its next step in fending off its unwanted suitor? Heading to Israel.
Perrigo, in an effort to hive off $175 million a year in costs, is laying off 6% of its workforce, among other steps.
Some industry watchers have predicted that Perrigo would make shareholder-friendly moves to persuade investors not to accept Mylan's hostile tender offer. And now--leading with job and cost cuts--the Dublin drugmaker is doing just that.
Some of Perrigo's shareholders have already spoken out against Mylan's hostile pursuit of the company. But now, Michigan Governor Rick Snyder is getting on board.
With Mylan now halfway through its Perrigo tender offer period, the company tried once again on Tuesday to make its case for shareholders. The multiple it's offering is attractive, Mylan's execs insisted--and that's why no rival bidders have stepped up to top it.
Some analysts have never been all that keen on Mylan's hostile quest for Perrigo. But some forthcoming obstacles for Perrigo's businesses now have at least one questioning the deal's logic even further.