When we last checked (yesterday), AZ had once again spurned Pfizer's offer to buy it. Today, we hea that companies like Amgen, Sanofi or AbbVie could potentially bid. Now, Sanofi's CEO Chris Viehbacher had effectively put the kibosh on that notion yesterday with regard to his company. He said he is not interested nor in need of a megadeal. He also opined tha Pfizer's particular fit with AZ might be somewhat unique in the industry -- mainly built on Pfizer's desire to complete a tax inversion strategy. AZ doesn't like the Pfizer plan much though. See Fierce Pharma.
Various analysts in the industry say they doubt either AbbVie or Amgen provide a good fit. Mainly neither provides particularly good financial synergies within the proposed combined company. Further to that, GSK's CEO Andrew Witty says his company also has no interest and is willing to sit this one out on the sidelines as an interested observer. He said he'd rather entertain less disruptive and smaller acquisitions -- something Pfizer was also echoing itself until it became enamored with thoughts of AZ and a lower corporate tax rate. See Bloomberg.
So much for Pfizer and AZ. We also have news on Mylan's attempt to buy Meda. That appears to have been quashed yesterday when Meda's biggest shareholder expressed low to no interest in such a deal. What to do next for Mylan? Well several options have been floated by analysts. These include purchase of any of the following companies:
- Hikma Pharmaceuticals $5.1 B market cap
- Mallinckrodt and its lower Irish tax rate of 12.5%
- Akorn Inc $2.4 B market cap
- Stada Arzneimittel AG $2.6 B market cap
All of these would add to Mylan's own $2.3 B market cap and would hopefully allow it to continute to compete with the likes of Valeant or even Actavis which Mylan tried unsuccessfully to acquire last year.
Failing in its attempts to acquire another company, Mylan is looked at as a possible takeover prospect itself -- as the US's leading generic drug supplier. Companies mentioned as possibly wanting to buy Mylan include the ever-present Valeant, Teva or Ireland's Perrigo. Valeant still needs assets to reach its goal of a market cap in excess of $150 B by 2016, at which time it would be among the top 5 pharma companies in the world by cap valuation. See Bloomberg.
Posted by Bruce Lehr Apr 30th 2014.