When Mylan offered to buy Perrigo for $205 per share last Wednesday, the brewing $29 billion bid was hailed as the giant generics deal Wall Street has been anticipating. But this deal has an animal health angle too: If Mylan pulls it off, the acquisition will mark its entry into the veterinary market.
More than a couple of analysts agree that there may be a company out there that's after Mylan--and that that could have prompted the company's $28.9 billion bid for Ireland's Perrigo. But now that Mylan's made its offer, could that spur other Perrigo offers, too?
Since Mylan went public on Wednesday with a $205-per-share buyout offer for Ireland's Perrigo, analysts have been weighing the pros and cons of a tie-up between the two generics makers. But there's one thing at least a few of them agree on: The $29 billion bid has to be a response to other M&A action going on behind the scenes.
Generics specialist Mylan has zeroed in on the big buyout everyone's been waiting for. The Pittsburgh-based drugmaker offered $205 per share for Perrigo, the over-the-counter drugmaker that just closed its own $4.5 billion deal for Belgium's Omega Pharma.
Perennial dealmaker Perrigo signed on the dotted line for Belgium's Omega Pharma, elbowing past rival bidders to expand its footprint in the global OTC market.
Deal-hungry Perrigo is looking for more seats at the over-the-counter table, and the drugmaker may soon get its wish. The company has entered exclusive talks to acquire Belgian OTC maker Omega Pharma, inching past big-name competitors like Sanofi, Actavis and Boehringer Ingelheim.
Smokers often turn to over-the-counter nicotine lozenges to cut their urges when they are trying to quit smoking. It turns out that products made by Perrigo and sold through a whole host of retailers like Wal-Mart and CVS might not work that well.
What's an OTC drugmaker worth in the race to the top of the consumer healthcare space? Potentially more than $5.3 billion, if that drugmaker is Belgium's Omega Pharma.
Talk about peer pressure. First, a couple of U.S. drugmakers pull off trans-Atlantic deals that shift their official HQs and lower their tax rates. Next, some bigger names go for the same tax-inversion strategy. Now, investors want to know why every drugmaker isn't jumping in.
OTC generics maker Perrigo could be the next tax-advantaged company in line for a buyout. And while Perrigo hasn't confirmed any M&A plans, speculation has been enough to send shares soaring.