Mylan says can close Perrigo deal by year end, reports profit2 min read . Updated: 07 May 2015, 01:52 AM IST
Mylan said it is legally committed to take its offer directly to Perrigo shareholders under Irish takeover rules
Generic drugmaker Mylan NV, at the centre of a high-stakes, three-way takeover battle, said on Tuesday it is fully committed to acquiring Ireland-based Perrigo Co. and believes it can complete the deal by year end.
Mylan, on a conference call with analysts, said it is legally committed to take its offer directly to Perrigo shareholders under Irish takeover rules. As proposed, the deal would give current Perrigo shareholders 39% of the combined company.
Mylan also reported slightly higher-than-expected first-quarter profit.
“We remain steadfast in our legally binding commitment to acquire Perrigo and have taken numerous concrete steps to lay out a clear and certain path towards completion," Mylan chief executive c said in a statement.
In making its case for a combination with Perrigo, Mylan said the merger would give it massive global manufacturing and supply chain presence, add to earnings, and make it a “stronger, larger and more diverse business" with “significant free cash flow." Mylan also said it would expect to realize at least $800 million in cost savings by the end of year four after completion of the deal.
“I don’t think we will disappoint on what we deliver on a short-term, mid-term and long-term basis," Bresch said.
Perrigo, which would give Mylan over-the-counter consumer and nutritional products and a line of generic topical medicines, last week rejected a sweetened $34 billion offer from Mylan.
At the same time, Mylan is attempting to fend off a takeover by Israel-based Teva Pharmaceutical Industries Ltd, the world’s largest generic drug maker, which earlier on Tuesday said it was moving ahead with plans to acquire Mylan contingent on the Perrigo deal not being completed.
Teva proposed to acquire Mylan for $82 per share, or about $43 billion, in cash and stock. Mylan, in rejecting the offer, said it “grossly undervalued" the company.
Mylan, on its call, said it would not discuss board matters or the Teva approach or answer questions related to Teva.
Excluding items, such as acquisition costs for a deal with Abbott Laboratories that enabled it to redomicile in Europe, Mylan earned 70 cents per share, topping analysts’ average expectations by a penny, according to Thomson Reuters I/B/E/S.
Mylan maintained its full-year forecast of adjusted earnings of $4 to $4.30 per share and revenue of $9.6 billion to $10.1 billion. It forecast second-quarter adjusted earnings of 86 cents to 90 cents per share.
Revenue of $1.87 billion for the quarter fell short of Wall Street estimates of $2.06 billion. The company said foreign exchange rates resulting from the impact of a strong dollar on overseas sales clipped revenue by $93 million.
The former Pittsburgh-based company, now headquartered in the Netherlands, posted a net profit of $56.6 million, or 13 cents per share, compared with $115.9 million, or 29 cents a share, a year ago.
Mylan shares slipped to $72.60 in extended trading from a Nasdaq close at $72.89. Reuters