Leerink analyst Jason Gerberry says a deal below $95 per share for Mylan (MYL) would be favorable for Teva (TEVA). Bloomberg yesterday reported that Teva is working on raising its buyout offer for Mylan to $86-$88 per share. At higher deal price, a Teva, Mylan combination still looks "highly accretive" and the "most logical combination," Gerberry tells investors in a research note. He thinks Mylan is yet to make a convincing case for achieving the cost synergies associated with its proposed acquisition of Perrigo (PRGO).

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.