Mylan to acquire Meda in US$9.9bn cash and stock deal

Will create a leading pharma firm with a portfolio of branded and generic medicines and a strong portfolio of over-the-counter products

Generic drugmaker Mylan said it will acquire Meda of Sweden in a cash and stock deal valued at US$9.9bn.

Meda is a manufacturer of branded, over-the-counter and generic drugs. The firm already handles European sales of Mylan's EpiPen, an emergency shot for severe allergic reactions and its biggest-selling branded product.

The deal comes three months after Mylan's hostile bid for Perrigo fell through. Mylan also rejected an unsolicited approach from Teva last year.

Mylan said Meda offered a 'compelling strategic fit', and combined the two firms would create a 'diversified global pharmaceutical leader with a portfolio of branded and generic medicines and a strong and growing portfolio of over-the-counter (OTC) products'.

Together the firms will have a balanced portfolio of more than 2,000 products, sold in more than 165 markets, with significant scale particularly in the US and Europe.

The acquisition of Meda also provides Mylan with entry into a number of emerging markets, including China, Southeast Asia, Russia, the Middle East and Mexico, complemented by Mylan's presence in India, Brazil and Africa.

This transaction builds on everything we have put in place around the world

The firms said they have a 'highly complementary therapeutic presence', which will create a leading global player in respiratory/allergy, and offer opportunities to expand in dermatology and pain.

'This transaction builds on everything we have put in place around the world, including our recent acquisition of the Abbott non-US developed markets speciality and branded generics business,' said Mylan's Chief Executive, Heather Bresch.

'Meda brings us greater scale, breadth and diversity across products, geographies and sales channels, and together we will have an even stronger global commercial infrastructure.'

Bresch added that Mylan is committed to entering the OTC market and continue its expansion in emerging markets and, with this deal, we will have an OTC business of approximately $1bn.

As part of integrating the two firms, Mylan and Meda said there would most likely be some 'changes to the organisation, operations and employees of the combined group', but said that no decisions had been made about this as yet. Meda has about 4,500 employees, while Mylan has 35,000.

The deal has been unanimously approved by Mylan's board of directors and recommended by Meda's board.

Meda's two largest shareholders, Stena Sessan Rederi and Fidim, which between them hold approximately 30% of Meda's outstanding shares, have accepted the offer, subject to certain conditions.

The transaction is expected to be completed by the end of the third quarter of 2016.

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