The acquisition would expand Mylan’s global reach in addition to growing its portfolio over over-the-counter products. Additionally, Meda would also provide Mylan with entry into new markets, such as China, Southeast Asia, Russia, the Middle East, and Mexico.
“The two businesses are highly complementary, and the combined business will benefit from strong therapeutic presence in respiratory/allergy, dermatology and pain and inflammation, as well as enhancing our mass in Europe and US presence," said Meda CEO, Dr. Jörg-Thomas Dierks.
Mylan explained in its release that he transition is a “compelling fit,” in an environment where “scale and reach are becoming increasingly important.”
The combined business will have a portfolio of more than 2,000 products across branded/specialty, generics, and OTC segments.
The acquisition is expected to be completed by the end of the third quarter of 2016.
The transaction come on the heels of the Mylan’s recent acquisition of Abbott Laboratories' branded specialty and generics business in developed markets outside the US – a $5.3 bn deal which increased its portfolio and cut its taxes.
"This transaction builds on everything we have put in place around the world, including our recent acquisition of the Abbott non-U.S. developed markets specialty and branded generics business,” said Mylan CEO, Heather Bresch. “Meda brings us greater scale, breadth and diversity across products, geographies and sales channels, and together we will have an even stronger global commercial infrastructure.”
Bresch also commented on the company’s continuing commitment to enter the OTC space and to expand into emerging markets.
“With this transaction, we will have an approximately $1 billion OTC business at close and gain entry into new growth markets such as China, Southeast Asia, Russia and the Middle East,” she added.
The deal also comes after Mylan’s failed takeover of Perrigo.
At the time of the rejection, Joseph C. Papa, Perrigo Chairman and CEO, stated, “We have said all along that this offer from Mylan was a bad deal for our shareholders, as it significantly undervalued our durable business model and industry-leading future growth prospects.”
The $26 bn takeover bid was rejected last November.