Teva, Israel-based pharmaceutical giant’s attempt to acquire United States based Mylan resulted in a failure. The $40 billion worth merger with Teva’s competitor was aimed at ending the battle between the two companies. Three drug manufacturing corporations with a special focus on generic pharmaceuticals will further strengthen the fight for bigger market share now. A Netherlands-based Mylan is also planning to acquire it another competitor, Perrigo. The Ireland based corporation may be merged with Mylan in a deal of $33 billion. But as of now Perrigo has denied the deal. Chairman Rober J. Coury from Mylan has criticized his Teva CEO for the deal. The Coury wrote a letter to the CEO and said that the company’s culture is flawed and take over the approach to the competitor is wrong. According to the Coury, this deal will force Teva’s problems on his own company and even Mylan’s shareholders will suffer due to this deal. The merger is in no one’s interest.
The Teva is giving Mylan’s shareholders $82 a share. Mylan officials have clearly said that there will be no talks of the merger unless they are getting more than $100 a share. Chairman Coury termed the offer as an insufficient pricing. He also said that there is instability in the Teva’s top leadership, which changed three chief executives in last eight years. This has resulted in a poor financial performance. He also pointed out that the merger of two companies is just aimed at the size and this could be blocked by antitrust laws.