Mylan (MYL) has sued Celgene (CELG) over the what Mylan says are illegal actions that Celgene has taken to keep generic versions of its Revlimid and Thalomid blockbuster drugs off the market.
Mylan wants to force Celgene to sell it enough Revlimid and Thalomid at market prices so that it can carry out bioequivalence testing. Mylan also wants damages for its inability to sell generic versions of the therapies.
Revlimid treats disorders caused by poorly formed blood cells and Thalomid is for Hansen's Disease, or leprosy.
Pharmaceuticals company Mylan (MYL) is reportedly formulating a largely stock offer to acquire Swedish drug maker Meda (MDABF), which has a market cap of $4.5B, although the U.S. company would probably offer a substantial premium.
A deal could slash Mylan's tax bill if more than 20% of its shares were to be transferred to foreign owners.
The drugs that Mylan would receive include therapies for rheumatoid arthritis, women's health and respiratory disorders.
Mylan's (MYL) net profit rose 11% to $180.2M as double-digit growth at the company's specialty segment and in its foreign generics business counter-balanced a 45% drop in revenue from new products following approval delays.
Gross margin increased to 44% from 43.1%.
Projects 2014 EPS of $3.25-3.60 vs consensus of $3.38 and revenue of $7.8-8.2B vs $7.75B.
Mylan expects to make another "substantial transaction" this year, although the company didn't provide details.
Jazz Pharmaceuticals (JAZZ -0.5%) has been the subject of takeover rumors for quite some time now thanks to its Irish domicile, but the company may have made itself even more attractive with the recent $1B deal for Gentium, Bloomberg notes.
JAZZ's operating margin and profit margin are "both [in the] top 96% of specialty pharmaceutical companies worldwide that have market values exceeding $1B," Tara Lachapelle says.
TEVA and Mylan (MYL -0.6%) are listed as "possible suitors."
Allegations of "significant violations of current good manufacturing practice," may cost Strides Arcolab a quarter of a billion in its deal with Mylan (MYL).
MYL's deal for the Bangalore-based company's injectable drugs business is now setup to exclude $250M unless the company can resolve the FDA's concerns.
Here's the language from MYL: "The final transaction terms have been restructured to include provisions such as a hold back, or contingent consideration, of $250M of the potential $1.75B total purchase price, which will be payable in whole or in part to Strides upon satisfaction of certain regulatory conditions."