Meda AB & Mylan Inc deal on hold!
Swedish pharmaceutical manufacturer Meda AB declined a merger offer from Mylan Inc. for a second time, Meda said on Monday.
Cecil-based Mylan, which has said it wants to complete a “substantial” acquisition this year, offered at least $6.7 billion for Meda last week, having made an unsuccessful bid earlier this month.
Meda said the offer was rejected in part because its largest shareholder, Sweden’s billionaire Olsson family — which owns shipping, offshore drilling, finance and property companies — doesn’t support the deal.
“The board’s decision is based on a strong belief in the continued potential of Meda as a stand-alone company and the assumption that a transaction cannot be completed as it lacks sufficient support from Meda’s largest shareholder,” the company said.
Mylan spokeswoman Nina Devlin declined to comment.
Meda, which makes the allergy drug Dymista, had sales of $2.1 billion in 2013. Mylan generated $6.9 billion in revenue last year. Mylan primarily makes generic pharmaceuticals but sells the brand-name Epipen, which is used to treat severe allergic reactions.
Analysts have said that Meda would help Mylan expand in generic and branded respiratory and dermatology drugs, and strengthen its position in emerging markets and Europe.
Mylan’s interest in acquisitions occurs as the broader pharmaceutical industry is experiencing a wave of consolidation.
Pfizer Inc., one of the world’s largest drugmakers, offered about $100 billion for AstraZeneca, a bid that was rejected.
Actavis Plc, an Irish drugmaker with operations in New Jersey, agreed to buy Forest Laboratories Inc. for $25 billion in February.
Valeant Pharmaceuticals International Inc. has gobbled up drug and health product companies as it seeks to grow into one of the world’s five biggest drug manufacturers. Valeant teamed with Bill Ackman, a billionaire hedge fund manager, in a $45.7 billion bid to buy Allergan Inc., maker of the Botox cosmetic treatment.
In December, Mylan completed a $1.75 billion acquisition of an Indian maker of generic injectable drugs
