Israel’s Teva Seeks to Acquire Drug Manufacturer Mylan for $40 Billion
JNS.org – The Israeli pharmaceutical giant Teva has made a $40 billion offer for the drug manufacturer Mylan N.V. If the acquisition goes through, it will be the largest Israeli business deal ever.
The two companies would have a combined 400 short-listed drug requests with the US Food and Drug Administration, and another 80 submitted for the first time. According to estimates, the acquisition would allow Teva to eliminate some of the rising competition for the multiple sclerosis drug Copaxone, because Mylan has developed a rival version of Teva’s successful medication.
The companies’ combined revenue would comprise some $30 billion annually, and their earnings before interest, taxes, depreciation, and amortization would stand at some $9 billion per year. Teva estimates that the deal could save both companies $2 billion per year through efficiency measures and tax benefits.
Teva CEO Erez Vigodman said he was certain that a merger would provide “strategic and financial advantages for both companies.” But Mylan expressed reluctance to go through with the deal, saying in a press release that it has examined the proposal and believes “it is clear that such a combination is without sound industrial logic or cultural fit.”