Shares of drugmaker Mylan are going wild after getting a buyout proposal (MYL, TEVA)
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<span>Shares of Mylan pharmaceuticals spiked by more than 10% in pre-market trading after it received a buyout proposal from Teva pharmaceuticals.</span>
Teva proposed to buy Mylan for $82 per share in cash and stock in a deal worth about $40 billion, according to a statement.
<span style="line-height: 1.5em;">Erez Vigodman, CEO of Teva, said:</span>
<p style="padding-left: 60px;">"Our proposal would provide Teva stockholders with very attractive strategic and financial benefits and Mylan stockholders with a substantial premium and immediate value for their shares, as well as the opportunity to participate in the significant upside potential of the combined company - one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry."
<span style="line-height: 1.5em;">An earlier report from Bloomberg suggested the deal would be announced today.</span>
Teva shares rose by more than 3% in pre-market trading.
<span>Teva's statement also said the proposal offers a better alternative to Mylan's proposed acquisition of Perrigo, announced earlier this month. <span>Mylan </span>offered<span> to buy Perrigo for $205 per share in a deal worth $28.9 billion.</span></span>
<span><span>The combined company will have pro forma revenues of around $30 billion, Teva said in the statement.</span></span>
Mylan's chairman Robert Coury had released a statement last week on initial reports of the deal, calling them "media speculation," and saying the company "is fully committed to its stand-alone strategy, including its proposal to acquire Perrigo, and today's speculation has no impact whatsoever on this strategy."
<span style="line-height: 1.5em;">There have already been a number of </span>huge buyout offers and deals<span style="line-height: 1.5em;"> among pharmaceuticals and biotechs this year. </span>
<span style="line-height: 1.5em;">And late last month, </span><span style="line-height: 1.5em;">Teva Pharmaceuticals announced it will acquire Auspex Pharmaceuticals at $101 per share in cash.</span>
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