Mylan to buy Swedish drugmakerMeda in $7.2 billion deal

Tuesday, 23 February 2016 00:00 - - {{hitsCtrl.values.hits}}

Generic drugmakerMylan NV said it would acquire Meda AB in a $7.2 billion cash-and-stock deal in its third attempt to buy the Swedish company.

The move comes three months after Mylan gave up on its seven-month-long pursuit of smaller rival Perrigo.

The announcement of the takeover came alongside the company’s fourth-quarter results, which underwhelmed analysts’ estimates both in terms of profit and revenue.

Mylan is still on the prowl for deals, Chief Executive Heather Bresch indicated over a post-earnings conference call with analysts.

Meda makes branded, over-the-counter and generic drugs. It already handles European sales of EpiPen, Mylan’s emergency shot for severe allergic reactions and its biggest selling branded product.

Mylan said the offer, recommended by Meda’s board, valued the company at $9.9 billion, including debt.

Meda’s two largest shareholders, who own about 30% of the specialty pharmaceutical’s outstanding shares, have accepted the offer, Mylan added.

In 2014, Meda spurned takeover offers from Mylan after its biggest shareholder rejected the deal.

Stena SessanRederi AB, controlled by the Olsson business family, is the biggest shareholder in Meda, with a 20.7% stake.

“Both companies have changed considerably since then,” Meda’sBoard Chairman Martin Svalstedt told Reuters, highlighting recent acquisitions made by both drugmakers.

Last year, Mylan completed its purchase of Abbott Inc’s specialty and generics business in developed markets outside the United States, which helped it shift its tax address to the Netherlands.

Meda in July 2014 unveiled its biggest deal ever – the$3.1 purchase of Rottapharm– weeksafter the Italian firm scrapped flotation plans.