BMO Capital believes Abbott (ABT) coming out on the side of Mylan (MYL) management on the vote on the proposed offer to acquire Perrigo (PRGO) marginally increases the chances of such a takeover happening and lowers the likelihood of Teva (TEVA) successfully acquiring Mylan. However, the firm noted that the majority of investors it spoke with are less positive about a deal for Perrigo than a deal with Teva, which the firm thinks is reflected in Mylan shares' weakness today. BMO maintains its Market Perform rating and $82 target on Mylan.

Perrigo announced that pharmaceutical company Esteve Healthcare has signed a binding offer to acquire Perrigo's HRA Pharma Rare Diseases business for a total consideration of up to EUR 275M, consisting of an upfront cash payment of EUR 190M and up to EUR 85M in potential earnout payments based on the Rare Diseases business achieving certain sales milestones. Following the information and consultation process with HRA Pharma Works Council in France, Perrigo would be able to exercise the put option granted by Esteve and enter into a definitive agreement with Esteve for the sale of the Rare Diseases business. The proposed final transaction is expected to close during the third quarter of 2024, subject to the satisfaction of the HRA Works Council consultation and customary closing conditions, including receipt of regulatory approvals.