Teva Buys Allergan Unit: How Mylan, Other Biotech Stocks Are …
Related
TEVATeva Still A ‘Must-Own’ Stock, Worth $86Benzinga’s Top UpgradesWeekly 52-Week Highs Highlight: GIS, AAP, BCR, TEVA(GuruFocus)
Shares of Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) surged to new 52-week highs of $69.42 on Monday after the company announced its acquisition of Allergan PLC (NYSE: AGN)’s Generics segment for a total consideration of $40.5 billion.
Shares of Allergan also spiked to new 52-week highs of $334.38 as the company will receive $33.75 billion in cash and $6.75 billion of Teva stock, representing under a 10 percent ownership stake of Teva.
Israeli-based Teva stated in a presentation that its acquisition is expected to achieve cost synergies and tax savings of $1.4 billion annually. The deal is also expected to be double digit non-GAAP earnings per share accretive in 2016 and more than 20 percent accretion in years two and three following the closing of the deal.
The combined companies will combine for a pro-forma revenue of approximately $26.0 billion and PF EBITDA of around $9.5 billion in 2016. Accordingly, the new entity will become a top-10 global pharmaceutical company.
The deal marks the largest in Israel’s corporate history and prompted the pharmaceutical giant to drop its $40 billion hostile bid for Mylan NV (NASDAQ: MYL).
Shares of Mylan plunged more than 13 percent Monday as some investors were anticipating a sale of the company to Teva at the proposed $82 per share offer. The hostile bid met resistance from Mylan’s executive team who argued that a merger has no “industrial logic” or “cultural fit.”
According to a report by Reuters, Mylan said it will continue pursuing its acquisition of Perrigo Company plc Ordinary Shares (NYSE: PRGO).
Investors reacted to the report as shares of Perrigo were trading higher by more than 4 percent.
Posted-In: Allergan Generic Drugs Generic drugs israelBiotech Health Care Intraday Update Movers General
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source:
Teva Buys Allergan Unit: How Mylan, Other Biotech Stocks Are …
