Mon, Nov. 23, 3:56 AM
- AstraZeneca (NYSE:AZN) has finalized plans to divest its Crohn's disease drug Entocort by selling U.S. rights to the medicine to Perrigo (NYSE:PRGO) for $380M.
- The move is part of AstraZeneca's "externalization" drive, which aims to sell non-core products to help it fill a short-term revenue gap caused by older drugs, while investing in a pipeline of new medicines.
- Entocort had U.S. sales of $89M in the first nine months of 2015.
Mon, Nov. 16, 12:26 PM
Fri, Nov. 13, 9:44 AM
- Perrigo (PRGO -6.9%) confirms that Mylan (MYL +10.6%) failed to gain tender commitments for at least half of Perrigo's shares in its bid for the company. As of the deadline this morning at 8:00 am ET, less than 40% of PRGO stockholders had tendered shares.
- Chairman & CEO Joseph Papa says, "We have said all along that this offer from Mylan was a bad deal for our shareholders, as its significantly undervalued our durable business model and industry-leading future growth prospects. Strong organic growth, a disciplined approach to M&A and transparent, accessible corporate governance policies are the foundation of our successful business strategy. I am delighted that Perrigo shareholders voiced their clear support for this management team and our long-term strategy, highlighted by our "Base Plus Plus Plus" growth model. Now that the Mylan tender offer is behind us, we look forward to continuing to create significant value for our shareholders. Our confidence in Perrigo's compelling near- and longer-term growth prospects and our steadfast commitment to delivering returns to shareholders remain unchanged. Even with all the distractions over the past seven months, our unrivaled team has executed our strategy and continued our commitment to delivering Quality Affordable Healthcare Products to customers and patients across the globe."
- The company will immediately begin its previously announced $2B stock repurchase program with a buy back of $500M by year end.
Fri, Nov. 13, 9:14 AM
Fri, Nov. 13, 7:54 AM
- To no one's surprise, it appears that Mylan (NASDAQ:MYL) will come up short in its effort to get Perrigo (NYSE:PRGO) stockholders to tender at least 50% of the company's outstanding shares by this morning. The deal was $75 in cash plus 2.3 MYL shares for each PRGO share. Based on yesterday's closing prices, Mylan's bid is valued at $174.36, a modest 11.4% premium over Perrigo's closing price of $156.55.
- PRGO shareholders appear to agree that Mylan's bid was too low.
- In premarket trading, MYL is up 11% and PRGO is down 11%, both on robust volume.
Thu, Nov. 12, 10:43 PM
- With an 8 a.m. deadline looming, Mylan (NASDAQ:MYL) is set to lose in its $26B hostile bid for Perrigo (NYSE:PRGO), with a minority of shareholders tendering their holdings, sources tell The Wall Street Journal.
- Shares could keep coming in by morning -- but most institutional shareholders had to tender by tonight to be counted by the DTC clearinghouse, so the result may be a foregone (but surprising) conclusion.
- Mylan needs to hit the 50% threshold to take control.
- Mylan's been engaged in a pitched seven-month pursuit of the generic-drug maker, full of back-and-forth sniping between boards and execs.
- Previously: U.S. FTC OKs Mylan's intended takeover of Perrigo (Nov. 03 2015)
- Previously: Mylan discloses SEC subpoena; Perrigo issues new broadside against bid (Oct. 30 2015)
Tue, Nov. 10, 9:00 AM
- The FDA approves Perrigo's (NYSE:PRGO) generic version of Upsher-Smith Labs' KlorCon (potassium chloride) extended-release tablets (600 mg and 750 mg) that are marketed by Sandoz Pharmaceuticals (NYSE:NVS). The product is indicated for the treatment of hypokalemia (low levels of potassium in the blood).
- The U.S. market for the both generic and branded offerings is ~$81M.
Wed, Nov. 4, 8:54 AM
Tue, Nov. 3, 6:52 PM
- The U.S. Federal Trade Commission (FTC) clears Mylan's (NASDAQ:MYL) proposed acquisition of Perrigo (NYSE:PRGO) subject to Mylan divesting certain products following the close of the deal. The FTC's action is the final regulatory hurdle needed by Mylan to close the transaction.
- There is a bit of work remaining, though, since Perrigo has repeatedly stated that Mylan's offer of $75 per share plus 2.3 shares of MYL for each PRGO share is grossly inadequate. It continues to urge its stockholders not to tender shares. The deadline to do so is 8:00 am ET on November 13.
Fri, Oct. 30, 5:19 PM
- Mylan (MYL -3.7%), down 0.2% after hours, says in its 10-Q filing that on Sept. 10, it got a subpoena from the SEC "seeking documents with regard to certain related party matters."
- "Mylan is cooperating with the SEC in its investigation, and we are unable to predict the outcome of this matter at this time," the company says of the subpoena.
- Mylan issued a Friday night document dump related to its hostile Perrigo (PRGO -4.9%) bid.
- Perrigo reacted predictably to Mylan's latest earnings presentation, again calling the offer "grossly inadequate" and saying the presentation appeared "PRGO)+Comments+on+Mylan+(NASDAQ:MYL)+Presentation%3B+Says+it+Appeared+Unconvincing/11020465.html" target="_blank">unconvincing." Perrigo still strongly recommends its shareholders avoid tendering into Mylan's deal.
- "Mylan is avoiding the real measures that shareholders look to, such as actual takeover premiums and Perrigo's durable high trading multiple, and instead invents new concepts – such as 'hypothetical' share prices and 'accretion' to target shareholders," Perrigo's statement read.
- Previously: Perrigo strikes out with NY court in attempt to block Mylan bid (Oct. 30 2015)
- Previously: Mylan fails to impress analysts on the merits of its bid for Perrigo (Oct. 14 2015)
Fri, Oct. 30, 8:39 AM
- The U.S. District Court for the Southern District of New York denies Perrigo's (NYSE:PRGO) motion for a preliminary injunction to block Mylan's (NASDAQ:MYL) hostile takeover bid, ruling that Mylan had provided adequate public disclosures regarding the synergies expected from the combination of two firms. It also ruled that Mylan's disclosures pertaining to its plan to delist Perrigo from the NYSE and TASE as soon as practicable following the merger were appropriate.
- Mylan's offer is $75 plus 2.3 MYL shares for each PRGO share. Based on yesterday's closing for MYL, the offer is valued at $180.29, less than a 9% premium over PRGO's closing price of $165.81.
Thu, Oct. 22, 10:17 AM
- Perrigo Company (PRGO -2.5%) Q3 results: Revenues: $1,344.7M (+41.3%); COGS: $795.9M (+26.4%); R&D Expense: $41.6M (+13.7%); SG&A: $291.5M (+121.0%); Operating Income: $188.6M (+37.5%); Net Income: $112.6M (+16.9%); EPS: $0.77 (+6.9%); Quick Assets: $182M (+83.7%).
- 2015 Guidance: Adjusted EPS: $7.65 - 7.85.
Thu, Oct. 22, 6:09 AM
Wed, Oct. 14, 1:09 PM
- Mylan (MYL +1.4%) executives did their best to sell the merits of the company's hostile bid for Perrigo (PRGO +1.2%) but some analysts were not inspired.
- RBC's Randall Stanicky thinks Mylan's rationale "falls short on several points." In particular, he cites Mylan's assertion that Perrigo's "unaffected" stock price is ~$129 (currently exchanging hands at $160) implying a 13x P/E (2017).
- Jeffries' David Steinberg states that "although some of Mylan's arguments were thoughtfully presented...most failed to resonate...we continue to see lackluster financial/strategic benefits for Perrigo and Mylan's presentation ultimately failed to convince us that tendering would be the right move for fundamentally focused PRGO investors." Adding, "...we believe Mylan's analysis conspicuously overlooks the meager share price premium being offered - particularly since we're not sure we agree with Mylan's calculation of Perrigo's "unaffected" share price."
- Leerink's Jason Gerberry cites "several deal uncertainties that were not addressed" in the presentation, specifically how Mylan expects to achieve the cost synergy target of $800M and whether Mylan has the support of 80% of Perrigo shareholders considering that merger arbs own as much as 25% of PRGO per recent 13-F filings. He also cites the disagreement between the companies regarding Irish takeover law and the inability of his group to find any statutory provisions that support Mylan's view on the issue.
- Mylan's most recent bid for Perrigo was $75 per share in cash plus 2.3 shares of MYL for each PRGO share. Based on a recent price for MYL, the value of the offer is $171.60, representing a premium of only 7% for PRGO shareholders.
Tue, Oct. 13, 4:39 PM
Mon, Oct. 5, 12:10 PM
- Perrigo (PRGO +0.3%) exclusively licenses Flamel Technologies' (FLML +1.5%) LiquiTime. The platform will be used to develop a portfolio of extended release suspension products targeted to the U.S. OTC market. Specific financial terms are not disclosed.
- LiquiTime, a liquid suspension of small drug-coated microparticles, can be applied to a wider range of medicines than ion exchange resin technology.
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