ALLEGAN (WKZO-AM) — A west Michigan business analyst says he’s not expecting any new hostile takeover attempts of generic drug-maker Perrigo in the near-future, after Mylan’s bid for the Irish-based, Allegan-founded company failed last week.
Dr. Brian Long with Grand Valley State University said Perrigo is taking steps to fend off companies like Mylan by purchasing about $2 billion of its own stock.
“Which will, again, boost the value of the stock, and possibly bring it high enough that other suitors aren’t going to come in and do what Mylan just did,” Long said.
However, Long said Perrigo remains vulnerable if a pharmaceutical giant with lots of cash wants to take a run at the company.
“My hope in the moment is that they’ve seen this unsuccessful run at the company and how tight the stockholders are,” Long said.
Shareholders rejected a $26 billion deal, which Perrigo officials called “undervalued.”
– Anthony Pollreisz
