US $40 billion acquisition of mylan by generic giant TIWA to create a generic super carrier

Source: Biovalley April 22, 2015 rumors come true! Teva, the generics giant, really wants to buy mylan! The Israeli pharmaceutical giant on Tuesday offered a $40 billion takeover bid for mylan, a US generic drug maker, in cash plus shares (50% + 50%) TIWA's offer of $82 per share was 21% higher than the closing price of mylan on the previous trading day At present, the acquisition has been strongly supported and unanimously approved by the board of directors of TIWA If the M & A is successful, it will create a generic super carrier with an annual revenue of more than 30 billion US dollars in the field of medicine, which will bring a change to the global generic market pattern, and at the same time, it will reestablish the unparalleled global position of TIWA in this field At present, TIWA is facing the severe challenge of many imitative pharmaceutical manufacturers in India TIWA said that the combined company will have more than 400 generic applications waiting for FDA approval, more than 80 of which are the first generic applications submitted TIWA said that the merger with mylan will create a unique and differentiated business model, make full use of the important assets and capabilities of both sides in the field of generic drugs and specialty drugs, realize technology upgrading and scale upgrading, and significantly expand the production network, terminal product portfolio, commercialization capacity and global geographical coverage At the same time, it has established a global leading position in multiple sclerosis, respiratory, pain, allergy treatment and other specialized treatment fields The combined specialized medicine business is expected to generate annual revenue of more than 10 billion US dollars TIWA expects the combined company to achieve a medium single digit growth, with annual revenue of more than $30 billion and annual savings of $2 billion in operating costs and taxes, which are mainly due to the significant overlap of business between the two sides Robert Coury, an industry analyst and chairman of mylan, has previously said that this significant overlap could hinder regulatory approval of acquisitions But Mr Tyva does not think so, saying it has carefully studied the regulations on mergers and acquisitions and is confident that the deal will be approved by regulators For Tyva, the acquisition is also a major move in the M & a market that industry observers have been looking forward to since CEO vigodman took over the company last year Copaxone, a multi sclerosis (MS) blockbuster drug with annual sales of more than $5 billion, is facing a patent cliff, and the company urgently needs some top aid TIWA has promised to refocus on generic drugs However, it is not easy to acquire mylan Just recently, mylan launched a poison pill program, sending a $29 billion takeover bid to Irish Briggs & Noble to resist an unsolicited hostile takeover Coury, chairman of Meilan, issued a statement on Friday, clearly opposed the merger with TIWA and insisted on the strategy of independent operation Coury said that the merger with TIWA obviously does not have a reasonable industry logic, the two companies do not fit in culture, and the business of both sides obviously overlaps, making it difficult to pass the approval of anti-monopoly regulators However, according to vigodman, CEO of TIWA, the merger of TIWA and Meilan will provide more attractive and value creating options for Meilan and its shareholders compared with the merger of bailigo by Meilan Meilan's business and TIWA's business are highly complementary The merger of the two sides can not only provide maximum value to financial stakeholders, but also better serve patients, customers and health care systems around the world.