Irish generics maker evades Mylan takeover bid and expands gastroenterology portfolio

Irish drugmaker Perrigo has fended off a hostile takeover bid from rival Mylan, and agreed to buy the US distribution rights to AstraZeneca’s gastroenterology drug Entocort (budesonide). The $380 million (£252 million) deal also includes US rights to a generic version of budesonide, currently distributed by Par Pharmaceuticals.

AstraZeneca had previously sold the rights to distribute budesonide outside the US to Tillotts Pharma (part of Zeria group in Japan).

Mylan had been pursuing Perrigo since April 2015, but its offer was not taken up by Perrigo shareholders, and lapsed in mid-November. Mylan itself was under threat of takeover by Israeli generics giant Teva, until Teva diverted to buy the former-Actavis generics business of Allergan.

Instead of buying Perrigo, Mylan intends to buy back up to $1 billion of its own shares (funded partially by $1 billion of new borrowing).