Meda Rejects Mylan Takeover Bid
Swedish drugmaker, Meda, have confirmed that they have rejected a takeover bid from US generics major, Mylan.
Shares in Meda, which markets specialty treatments, over-the-counter products and branded generics, were frozen after a report from the Financial Times noted that Mylan was planning to submit an offer that would create a $23 billion company. The Financial Times cited someone familiar with the matter as saying that Mylan would pay a “significant” premium to the market value for Meda.
Meda has since issued a statement confirming that they have been contacted by Mylan “regarding an indicative proposal to combine the two businesses.” The drugmaker noted that their board had met and “decided to reject the proposal.”
The company also added that “all continued discussions between Meda and Mylan have been terminated without further actions.” When trading in Meda’s shares resumed following the announcement, they soared by 12.5% to 16.70 kronor at the end of the day.
Mylan and Meda already currently work in partnership on the distribution of Mylan’s EpiPen auto-injectors in Europe.
Last year Meda reported sales of 13.11 billion kronor, enhanced by growth in the emerging markets and strong US results for their hay fever treatment, Dymista.
Mylan are not the first company to mention Meda as an acquisition target. In June last year, India’s Sun Pharmaceutical Industries was also thought to be planning a takeover bid, though the Meda denied any talks were taking place.
Mylan has yet to comment on the discussions, but has not hidden their interest in making acquisitions.