- CEO bought $221,568 of Mylan shares in March, filing indicates
- Papa's stake in Mylan has turned negative since purchase
Perrigo Co. Chief Executive Officer Joe Papa is trying to fend off a takeover by generic drugmaker Mylan NV. He’s also a Mylan shareholder.
Papa held 4,965 shares of Mylan as of Sept. 11, 3,840 of which he acquired on March 12, according to a regulatory filing from Perrigo Thursday. He paid $221,568 for the March stake, according to the filing.
Papa declined to comment on the matter through a spokesman.
“We are pleased that Mr. Papa personally saw the upside investment opportunity in Mylan stock when we were trading in the high-$50s, which of course makes his comments now about the company all the more confusing," Mylan spokeswoman Nina Devlin said. "Nevertheless, we look forward to welcoming him as a shareholder of the combined Mylan-Perrigo.”
In past letters, Papa has questioned Mylan’s leadership, saying a deal would be a bad fit and comes with significant risk.
Soon after buying the stake, Papa’s shares were in the black. The 3,840 shares he bought in March gained as much as $64,000 in value after Teva Pharmaceutical Industries Ltd. announced a bid for Mylan in April. Since then, they’ve turned into a loss. Teva dropped its bid for Mylan in August, and the shares purchased in March are now worth about $32,000 less than what Papa paid for them, according to the filling and pricing data compiled by Bloomberg.
Mylan shares fell less than 1 percent to $49.18 at 9:38 a.m. in New York. Perrigo fell less than 1 percent to $180.61.
Shortly after Mylan made its proposal to buy Perrigo in April, Papa said that he hadn’t heard from Mylan about a possible deal in almost a year, long before he bought the shares.
Papa has repeatedly rejected Mylan’s offers of an acquisition of Perrigo, which makes over-the-counter and generic drugs. On Thursday, Perrigo’s board unanimously rejected the hostile bid to acquire the company for $27.1 billion, calling it inadequate, and recommended that investors don’t sell their stock to Mylan.
Mylan’s Sept. 14 offer, made directly to shareholders, of $75 in cash and 2.3 Mylan shares apiece, “substantially undervalues” the company, Perrigo said in a statement Thursday. The bid exposes Perrigo shareholders to “significant financial risks” as well as to Mylan’s “troubling corporate governance,” Perrigo said.