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.
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."
"This proposed settlement will ensure that these important generic injectable medications ... remain available at a competitive price," the FTC says, mandating the divestiture of 11 injectable generics by Mylan (MYL) and Aglia Specialties before their $1.6B merger will get the regulator's blessing.
In its original form, the FTC said the deal would have limited competition in certain markets.
Mylan (MYL +1.3%) says its proposed acquisition of the Agila injectables businesses from Strides Arcolab has received approval from India's Foreign Investment Promotion Board.
The deal also received approval from the Cabinet Committee on Economic Affairs.
The approval comes as a relief for MYL, as India had frozen the deal earlier this year, and was considering a change to its foreign investment laws to protect the country's supply of cheap, lifesaving drugs.
India's Foreign Investment Promotion Board has reportedly delayed the approval of Mylan's (MYL) $1.6B acquisition of Agila Specialties, which provides injectable cancer medicines, from Bangalore-based Strides Arcolab, due to concerns that Mylan will ship Agila's treatments to the U.S. and not leave enough in India at affordable prices. Barclays analyst Douglas Tsao reckons the deal will go through but might be delayed, with Mylan having to "grant concessions regarding supplying certain types of drugs and certain prices."
Actavis' (ACT +1.5%) pursuit of Warner Chilcott (WCRX +0.5%) may be a way to defend itself from a potential takeovers by Valeant Pharmaceuticals (VRX +2.5%) and Mylan (MYL +2.2%). VRX routinely looks at potential acquisitions, but to date has stayed away from WCRX because of its dwindling pipeline, so a combined ACT/WCRX deal would be out of the picture. And it would be virtually impossible for MYL, with a market value of $11.7B, to buy the combined firm. It already has about $6B in debt and Street estimates put a combined companies near $21B.
Mylan (MYL) acquires Agila Specialties, a developer, manufacturer and marketer of high-quality generic injectable products, from Strides Arcolab for $1.6B in cash. The acquisition significantly expands MYL's global injectables platform and will provide entry into new high-growth geographic markets. The acquisition is expected to close in Q4 of 2013 should be immediately accretive to earnings. Shares +1.8% AH.
Looking to offset a patent cliff that could cut sales by up to $2.75B this year, Pfizer (PFE) is among the companies reportedly interested in acquiring Agila Specialties, the injectable-medicines unit of India's Strides Arcolab. Novartis (NVS), Mylan (MYL) and Fresenius (APCVZ) have also been eyeing Agila, which produces cancer treatments and antibiotics, and could be valued at $2B.
Companies lining up to take a hard look at buying a stake in Turkish drugmaker Mustafa Nevzat Ilac Sanayii in a deal that may value the company at $1B include GSK, LLY, PFE, ABT and MYL. Merrill Lynch reportedly has sent teasers to potential bidders and non-binding bids have begun to arrive; bidding may be done within two months.