Wells Fargo analyst Michael Faerm recommends that investors should not give credence to the rumors that circulated on Wall Street at the end of last week of a possible merger between Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Mylan (NASDAQ: MYL).
In Faerm's view, such a merger has advantages and disadvantages, but while it could be financially attractive, he considers it unlikely.
Faerm does not see the acquisition of a generic drugs company as a priority for Teva, and says that such an acquisition would not solve its growth problem. He also points out that Mylan may not necessarily be interested in a sale or merger.
This is not the first time that speculation has arisen about a merger between Teva and Mylan. In recent months, rumors have been rife about a big acquisition or merger move involving Teva. Besides Mylan, Canadian company Valent Pharmaceuticals International Inc. (NYSE: VRX) has also been mentioned.
Teva, traded on the New York Stock Exchange and the Tel Aviv Stock Exchange, has a market cap of $46.9 billion, and at the end of last week its share price touched an annual high of $55.14. Mylan has a market cap of $18.8 billion. It is one of four companies aiming to launch a generic version of Copaxone, Teva's flagship multiple sclerosis treatment.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2014
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