Israeli company offers to buy Mylan for $40 billion

MORGANTOWN, W.Va. — An Israeli company extended a $40.1 billion dollar offer Tuesday to purchase Mylan Pharmaceuticals, West Virginia’s 5th largest private employer.

Executives with the generic drug manufacturer, which reportedly brought in  $7.72 billion in 2014, said they have concerns about the logistics of a potential buyout.

“We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit,” said Mylan Executive Chairman Robert J. Coury on the company’s website.  “Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances.”

In the same news release Coury added, “Of course, should any party make an actual offer to acquire Mylan, the Board would carefully consider it in exercising its fiduciary duties in the best interests of the company, our stockholders and other stakeholders.”

Teva’s offer included cash and stock deals which created a buzz internationally and among business journalists Tuesday morning.

News of the offer sent Mylan’s stock soaring. It was up nearly nine percent in Tuesday morning trading.

“Folks seem to think this deal makes sense.  And they’ve been prodding Teva to do a deal,” said CNBC journalist Meg Tirrell.   “You’re seeing shares of Teva up this morning.  Mylan up as well.”

The announcement is the latest in offers and purchases in the drug manufacturing world.  Mylan is reportedly making offers on Ireland drug maker, Perrigo, for about $29 billion.

According to Tirrell, Mylan is a competitor for one of Teva’s most marketed drugs.

“Teva is dealing generic competition to its own branded multiple sclerosis drug Copaxone.  Interestingly, Mylan is one of the companies that would  potentially make a generic competitor to it,” Tirrell explained.  “That’s one consideration folks thinking Teva needs to beef up in response to losing that revenue from Copaxone.”

In a statement released Tuesday, Teva’s President and CEO Erez Vigodman said he’s confident any regulatory requirements in the deal could be  “met in a timely manner.”