Mylan said to raise Meda takeover offer to $6.7B
Mylan Inc., the biggest domestic maker of generic medicines, raised its offer for Swedish drugmaker Meda AB to about $6.7 billion, people with knowledge of the matter said.
The all-stock offer was sent this week, said the people, who asked not to be identified discussing confidential information.
A previous Mylan bid was rejected by Meda, the Swedish company said on April 4, without saying why or disclosing the offer's amount.
Meda would help Cecil-based Mylan expand in generic and branded respiratory and dermatology drugs, and strengthen its position in emerging markets and Europe.
Among Meda's products is the allergy drug Dymista. A majority of Mylan's products are generic versions of branded pharmaceuticals. But it makes EpiPen, a branded drug used to treat severe allergic reactions.
Generic drug manufacturers have been consolidating and buying up new assets as a way to broaden their revenue to include more profitable brand-name drugs and injectable medicines that face less competition.
Mylan has said it is looking to make a “substantial” acquisition this year. The company in December completed a $1.75 billion acquisition of Agila, an Indian maker of injectable medications that doubled the size of Mylan's injectables business.
Nina Devlin, a spokeswoman for Mylan, and Paula Treutiger, a Meda spokeswoman, declined to comment.
Meda's shares were halted in Stockholm trading on Friday. Mylan gained more than 3 percent to close at $52.10.
Actavis Plc, an Irish drugmaker with operations in New Jersey, in February agreed to buy Forest Laboratories Inc. for $25 billion. Valeant Pharmaceuticals International Inc. has been gobbling up drug and health products companies as it seeks to grow into one of the world's five biggest drug manufacturers.
Valeant this week teamed with Bill Ackman, a billionaire hedge fund manager, in a $45.7 billion bid to buy Allergan Inc., the maker of the Botox cosmetic treatment.
Bloomberg News and Trib Total Media staff writer Alex Nixon contributed to this report. Nixon can be reached at 412-320-7928 or email@example.com.