Mylan tables sweetened bid for Swedish generic drugmaker Meda

US generic drugmaker Mylan Inc has tabled a sweetened 145-crown (approximately $22) per share bid for Meda AB, after the Swedish generic drug maker had last month rejected its 130 crown per share offer, the Financial Times yesterday reported, citing people familiar with the matter.

The offer represents a premium of more than 50 per cent over Meda's share price in early April when Meda's board rejected Mylan's initial bid. (See: Swedish drug maker Meda rejects takeover offer from Mylan) 

Mylan responded to the rejection by saying that it was "considering a wide range of possible opportunities," indicating that the deal is far from being thrashed.

The latest offer values Meda at more than $9 billion, including debt. The company's stock price was trading at 128.50 crown before it was suspended from trading yesterday following the FT report.

Meda, based in Solna, outside of Stockholm, is one of Europe's leading specialty pharma companies with operations in over 55 countries, employing 2,900 employees, has an annual turnover of more than $2-billion.

Meda, whose largest shareholder is Stena Sessan Rederi AB, controlled by the Olsson family, with 23 per cent stake, specialises in cardiology, dermatology, respiratory, pain and inflammation, and gastroenterology.

It manufactures and markets specialty pharmaceuticals, branded generics, and over-the-counter (OTC) drugs. The company also has a strong pipeline of products in the late clinical phase for its major therapy areas.

Meda has manufacturing facilities in Sweden, France, Germany and the US. Its products are sold through a net work of agents and direct sales organizations in more than 120 countries.

Its competitors are Shire Plc, Valeant Pharmaceuticals, Synthetic Biologics, Orexo AB, BioPhausia AB, EpiCept Corp, and AnaMar Medical AB.

Last year media reports said that Mumbai-based Sun Pharmaceutical Industries was in talks to buy Meda for around $5 billion. (See: Sun Pharma in discussion to acquire controlling stake in Meda AB)

This is not the first time Mylan is facing a rejection. Last year Actavis Inc, the largest US generic drug maker by market value, rejected an over $15-billion takeover bid from its smaller rival Mylan.

Pennsylvania-based Mylan, which last year acquired India's Strides Arcolab's Agila Specialties division for $1.75 billion, is one of the world's leading generics and specialty pharmaceutical companies.

It has a portfolio of more than 1,100 generic pharmaceuticals and several branded medications. It also offers a wide range of anti-retroviral therapies, and is one of the largest active pharmaceutical ingredient manufacturers and sells its products in approximately 150 countries.

The New York Exchange-listed company has a market cap of $19.4 billion and posted net profit of $624 million in 2013 on revenues of $6.9 billion.

A deal with Meda would create a company with a market value of around $26 billion, revenues of around $9 billion and even substantially lower Mylan's corporate tax rate if it relocates its base to Stockholm.