Perrigo tumbles as shareholders reject Mylan offer

Pharmaceutical group Mylan’s offer to acquire Ireland-based Perrigo has lapsed.

Mylan said 40% of Perrigo’s shares were tendered, versus the minimum 50% it required to take control of the company as per the terms of the offer.

Mylan’s executive chairman Robert J. Coury said: “As we have said all along, Mylan viewed Perrigo as a unique and exciting opportunity, but not one that was required for the future success of our company."

“With one of the strongest balance sheets in our industry, including a debt to adjusted EBITDA ratio of 2x, as well as our well-recognised prowess in identifying attractive external assets, we are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified.”

The offer expired on Friday morning, but institutional investors had to tender by Thursday night to be counted by the national stock clearinghouse.

Mylan has been chasing after Perrigo since April, with Teva Pharmaceuticals briefly entering the frame with an unsolicited bid for Mylan, which it abandoned in July.

Mylan shares surged 10.5% in pre-market trading, while Perrigo tumbled 11%.