Leerink views Mylan's (MYL) Q1 results as mixed and notes management took the opportunity to pitch investors on the potential acquisition of Perrigo (PRGO). The firm views a Teva, Mylan combination as the transaction more likely to get consummated given the "relative ease" of combining two generic businesses versus a generic and a consumer store brand business. It also notes the dilutive nature of a Mylan, Perrigo deal in the first two years. Leerink views Mylan's poison pill as a "clear deterrent," but feels it "isn't bullet proof." The firm values Mylan shares at $67 on a standalone basis and $82 on a takeout scenario. It keeps an Outperform rating on the stock.

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.