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With Teva Bid Off the Table, Mylan’s Stock In ‘Show-Me’ Mode

Aug 7, 2015


Mylan NV beat the Street’s expectations and raised its outlook for the year Thursday, and Wall Street merely shrugged.

The reaction is the latest illustration of just how high the bar for Mylan has been raised now that its unsolicited suitor, Teva Pharmaceutical Industries Ltd., has dropped its bid and moved on.

Mylan’s shares dropped more than 15% after Teva withdrew its bid last week. Shares were up just slightly Friday, trading recently at $55.52, more than 30% below Teva’s $82-per-share offer.

“We believe shares will remain in show me mode,” Raymond James analyst Elliot Wilbur wrote in a research note.

Two weeks ago, Mylan had been in the middle of a three-way takeover tussle. The company was seeking to fend off Teva, while simultaneously pursuing rival Perrigo Co. with its own unsolicited bid.

Mylan hasn’t dropped its bid for Perrigo. But, on its conference call Thursday, Mylan’s CEO Heather Bresch said: “We like Perrigo, but we don’t have to have Perrigo.”

Perrigo’s shares are trading at $187.39 Friday, about 3% below the Mylan offer price. The value of Mylan’s offer...