Perrigo Co.’s chief executive officer said there’s a price at which deal talks with Mylan NV could happen, though the rival drugmaker’s current bid is nowhere near there.
Perrigo last month rejected Mylan’s latest offer of $75 in cash and 2.3 Mylan shares for each Perrigo share, which had a value of about $32.7 billion.
“We’re pretty far apart,” Perrigo CEO Joseph Papa said Monday at an investor meeting hosted by UBS AG in New York, where he gave a presentation and spoke to investors at a smaller session afterward. “We believe they have substantially undervalued the company.”
As it attempts to buy Perrigo, Mylan is the subject of a takeover offer by Teva Pharmaceutical Industries Ltd., which it has rejected. Perrigo estimates Mylan’s offer as being worth $202 a share, saying Mylan’s shares have been inflated. Mylan has said the offer for Perrigo is worth $232.23 a share. Papa declined to comment on what price he wants.
Perrigo shares rose 2 percent to $198.37 at the close in New York. Mylan shares gained 1 percent to $71.38.
Mylan has previously said it plans to go directly to Perrigo’s shareholders with an offer. That could happen by Sept. 14, Papa said at the conference. Perrigo doesn’t plan to use a poison pill to try and block such an offer. Nina Devlin, a Mylan spokeswoman, didn’t immediately respond to an e-mail asking for comment.
Mylan is still working to answer questions from the Federal Trade Commission as it seeks to make a deal for Perrigo palatable to regulators, Chief Financial Officer John Sheehan said at the UBS event.
Mylan’s chairman, Robert Coury, has told investors that the company could add sweeteners to lower the risk to Perrigo’s shareholders, people familiar with the matter have said. Papa said adding those types of terms could help a deal get done.
Perrigo makes prescription and over-the-counter drugs that Mylan is seeking to add to its lineup. About half of Perrigo’s $4.06 billion in revenue last year came from its consumer health-care division, including store-brand versions of popular medicine like Sudafed and NyQuil, sold in retailers such as Wal-Mart and Walgreens.
Teva’s $40.1 billion offer for Mylan is contingent on Mylan dropping its offer for Perrigo. Mylan has firmly rejected Teva’s proposals.