Mylan offers to buy Swedish pharma firm Meda for $9.9 bn

US pharmaceutical giant Mylan said Wednesday it has struck a $9.9 billon deal to buy Meda, capping two years of dogged pursuit of the Swedish drugmaker.

AFP| Last Updated: Feb 11, 2016, 07:29 AM IST

US pharmaceutical giant Mylan said Wednesday it has struck a $9.9 billon deal to buy Meda, capping two years of dogged pursuit of the Swedish drugmaker.

Mylan, one of the world`s leading generic drugs manufacturer, said the Meda acquisition would broaden and deepen its global reach and estimated pre-tax $350 million a year in operational savings.

Meda, based in Solna, Sweden, has a portfolio that includes specialty products, branded generics and over-the-counter nonprescription products, such as the antiseptic Betadine.

"This transaction builds on everything we have put in place around the world, including our recent acquisition of the Abbott non-US developed markets specialty and branded generics business," said Mylan chief executive Heather Bresch in a statement.

"Meda brings us greater scale, breadth and diversity across products, geographies and sales channels, and together we will have an even stronger global commercial infrastructure."

Meda`s two largest shareholders, representing about 30 percent of Meda`s outstanding shares, have accepted the cash-and-stock offer, valued at $9.9 billion including debt, which was unanimously recommended by Meda`s board of directors, Mylan said.

The transaction is expected to close by the end of the third quarter, subject to regulatory approval.

The announcement ends Mylan`s two-year chase for Meda. In 2014, the Swedish company rejected various buyout offers from Mylan, ranging from $6.7 billion to $9.0 billion, excluding debt.

Mylan failed in November to buy Perrigo, an Irish specialist in over-the-counter drugs, despite offering $35 billion.

Mylan said the Meda takeover, in addition to boosting its profits next year, would allow it to penetrate emerging-market economies such as China, Russia and Mexico, where growth potential is strong.

It announced the deal, and fourth-quarter earnings, after markets closed.

Mylan shares dropped 7.4 percent to $46.80 in after-market trade on disappointing revenues, which rose 20 percent from a year ago to $2.49 billion, well below analysts` $2.7 billion estimate.