Mylan Spends $7.2B on Swedish OTC; Investors Unhappy

Feb 11, 2016

Mylan has agreed to buy Sweden’s Meda AB for $7.2 billion in cash and stock -- a price that represents a 92% premium on Meda's Wednesday close.

A large part of Mylan's attraction to the deal involves acquiring Meda's European EpiPen sales, as well as its over-the-counter business. Meda turned down two previous buyout offers from Mylan in 2014. The acquisition of Meda also provides Mylan with entry into a number of new and attractive emerging markets, including China, Southeast Asia, Russia, the Middle East and Mexico, complemented by Mylan's presence in India, Brazil and Africa.  

According to Bloomberg, the 92% premium Mylan paid is one of the largest ever paid in a pharmaceutical industry deal worth $5 billion or more. Investors are calling the acquisition a "wealth-destroying decision."

Read the Bloomberg article

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