MORGANTOWN, W.Va. — Israeli drugmaker Teva extended a $40-billion offer to purchase Mylan Pharmaceuticals, though officials with West Virginia’s fifth-largest private employer doubt the deal could pass regulatory scrutiny.
Executives with Mylan, the generic drug manufacturer that reported $7.72 billion in revenue in 2014, said Tuesday they have concerns about a potential buyout.
“We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit,” said Mylan Executive Chairman Robert J. Coury on the company’s website.
“Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances.”
Teva’s offer included cash and stock deals which created a buzz internationally and among business journalists Tuesday morning.
In the same release Coury added, “Of course, should any party make an actual offer to acquire Mylan, the board would carefully consider it in exercising its fiduciary duties in the best interests of the company, our stockholders and other stakeholders.”
News of the offer sent Mylan’s stock soaring. It was up nearly 9 percent in Tuesday morning trading.
“Folks seem to think this deal makes sense. And they’ve been prodding Teva to do a deal,” said CNBC journalist Meg Tirrell. “You’re seeing shares of Teva up this morning, and Mylan up as well.”
The announcement is the latest in offers and purchases in the drug manufacturing world. Mylan is reportedly making offers on Ireland drug maker, Perrigo, for about $29 billion.
According to Tirrell, Mylan is a competitor for one of Teva’s most marketed drugs.
“Teva is dealing generic competition to its own branded multiple sclerosis drug Copaxone. Interestingly, Mylan is one of the companies that would potentially make a generic competitor to it,” Tirrell explained. “That’s one consideration folks thinking Teva needs to beef up in response to losing that revenue from Copaxone.”
In a statement, Teva’s president and CEO Erez Vigodman said he’s confident any regulatory requirements in the deal could be “met in a timely manner.”