Mylan’s largest shareholder has backed the generic drugmaker’s strategy to stay a stand-alone company as it fights a takeover bid from larger rival Teva Pharmaceutical.
Abbott Laboratories mentioned Tuesday that Mylan’s tactic and its strategy to purchase over-the-counter medicines maker Perrigo is compelling and will increase shareholder worth. It plans to vote its nearly 15 % stake in Mylan in favor of the Perrigo bid, which is valued at about $34 billion but has been rejected by Perrigo.
The news helped Perrigo become the day’s most significant winner on the S&P 500, rising $7.95, or 4.3 percent, to $191.25. U.S.-traded shares of Mylan N.V. have been amongst the largest losers on the index, falling $1.54, or two.1 %, to $72.05.
Abbott gained its stake in Mylan N.V. when Mylan purchased element of its generic drug company in February.
Teva Pharmaceutical Industries Ltd. has made a $40 billion takeover offer for Mylan but desires that organization to drop the Perrigo bid.
Leaders of Teva and Mylan traded barbs not too long ago in letters discussing the bid. Teva has mentioned that Mylan is trying to keep its board and shareholders from contemplating the offer you.
Mylan, in turn, has said Teva is meddling in its affairs and has not made a formal, binding offer.
Each Mylan and Israeli-based Teva Pharmaceutical Industries Ltd. are looking to consolidate in an increasingly competitive generic drug industry.
In connection with the Abbott deal, Mylan reorganized in the Netherlands as portion of a tax-decreasing move referred to as a corporate inversion.