Mylan to acquire generic business from Abbott - WTRF 7 News Sports Weather - Wheeling Steubenville

Mylan to acquire generic business from Abbott

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 Mylan Pharmaceuticals announced July 14 it is buying Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business in an all-stock transaction worth $5.3 billion.

Mylan, based in Canonsburg, Pennsylvania, said in a news release the acquisition would “instantly further diversify Mylan’s business and strengthen its commercial platform outside the U.S., building new opportunities for growth and additional sales channels in the acquired markets.”

The acquisition includes more than 100 specialty and branded generic pharmaceutical products in five major therapeutic areas as well as several patent-protected, novel and hard-to-manufacture products. The products include Creon, Influvac, Amitiza and Androgel. The addition is expected to double Mylan’s revenue in Europe, according to the company’s news release, and also expands Mylan’s geographical reach to stretch throughout Italy, the United Kingdom, Germany, France, Spain and Portugal.

USA Today reported Mylan stock up 2.6 percent pre-market, just hours after the company’s announcement.

Mylan CEO Heather Bresch said in a news release the business was targeted because of its “complementary portfolio of attractive specialty and branded generic products, many of which have strong continued growth potential.”

“The assets also have an impressive commercial infrastructure and capabilities, which provide us with reach in the physician and patient channels in the acquired markets, complementing our reach in the physician and patient channels in the acquired markets, complementing our reach in pharmacies,” Bresch said in a news release. “This enhanced commercial platform will help us drive the continued expansion of EpiPen Auto-Injector globally and enable us to more effectively launch important growth drivers, such as respiratory and biologics.”’

Mylan Executive Chairman Robert J. Coury said the transaction will provide numerous strategic and financial benefits to speed up the company’s long-term financial targets.

The transaction has been unanimously approved by Mylan’s Board of Directors, and is expected to close in the first quarter of 2015, subject to certain closing conditions, according to the company’s news release.

Abbott is expected to transfer the assets to a new public company, New Mylan, organized in the Netherlands, then after the transfer Mylan will merge with a wholly owned subsidiary of New Mylan, then New Mylan will be come the parent company of Mylan. The new public company will be called Mylan N.V. and will be led by the current Mylan leadership team.