JPMorgan analyst Chris Schott reinstated coverage of Mylan (MYL) with an Outperform rating and lowered his price target for shares to $62 from $80. Upside to estimates, capital deployment and multiple expansion can drive share upside following the company's failed bid for Perrigo (PRGO), Schott tells investors in a research note. The analyst this morning downgraded Perrigo to Neutral after resuming coverage of the name.

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.