Mylan to buy Meda for US$ 9.9 billion

Mylan N.V., a leading global pharmaceutical company (Mylan), announced a recommended public offer to the shareholders of Meda Aktiebolag (publ.) (Meda) to tender all their shares in Meda to Mylan (the Offer). The total offer consideration consists of a combination of cash and Mylan ordinary shares (Mylan Shares) with a value at announcement of SEK 165 per Meda share. The total value of the offer for all Meda shares, including Meda net debt, is approximately SEK 83.6 billion or USD 9.9 billion, which represents a multiple of approximately 8.9x 2015 adjusted EBITDA with synergies.

The combination of Mylan and Meda will create a diversified global pharmaceutical leader with an expansive portfolio of branded and generic medicines and a strong and growing portfolio of over-the-counter (OTC) products. The combined company will have a balanced global footprint with significant scale in key geographic markets, particularly the US and Europe. The acquisition of Meda also provides Mylan with entry into a number of new and attractive emerging markets, including China, Southeast Asia, Russia, the Middle East and Mexico, complemented by Mylan's presence in India, Brazil and Africa. Mylan and Meda have a highly complementary therapeutic presence, which will create a leading global player in respiratory/allergy, and achieve critical mass in dermatology and pain, offering greater opportunities for growth in these categories.

The offer has been unanimously approved by Mylan's board of directors and unanimously recommended by Meda's board of directors. Meda's two largest shareholders, representing in the aggregate approximately 30 per cent of Meda's outstanding shares, have undertaken to accept the offer, subject to certain conditions. Meda's shares are listed on Nasdaq Stockholm, Large Cap. The offer is subject to the satisfaction of a number of customary conditions, including clearance from relevant competition authorities, and is expected to be completed by the end of the third quarter of 2016. The offer is not subject to approval by Mylan shareholders and is not subject to any financing conditions

Daiichi Sankyo receives Japanese approval for methylene blue injection 50 mg

Daiichi Sankyo Company,  a global pharmaceutical company,  has received approval in Japan for the manufacture and marketing of the methemoglobinemia treatment, methylene blue injection 50 mg (methylthioninium chloride hydrate) for toxic methemoglobinemia.

Toxic methemoglobinemia is a toxic disorder in which the methemoglobin concentration in the blood is elevated due to various substances found in drugs, pesticides, etc., causing symptoms such as cyanosis, headache, dizziness, shortness of breath, and loss of consciousness.

Methylene blue is one of the agents publicly offered for development by the Review Committee on Unapproved Drugs and Indications with High Medical Needs), set up by the Ministry of Health, Labour and Welfare (MHLW). Daiichi Sankyo acquired sole development and marketing rights for Japan from Provepharm SAS before developing Methylene Blue. In March 2014, Daiichi Sankyo filed an NDA for the manufacture and marketing in Japan for the indication. Daiichi Sankyo received a grant from Pharmaceutical Development Support Center for the development.

In order to collect data on both the safety and efficacy of Methylene Blue, Daiichi Sankyo will conduct a drug use-results survey covering all patients treated with the product during a certain period following its launch.

Fare well - Pharma

The leading 50 pharma companies from the state registered EBDITA margins of 23.9 per cent during 2012-13 as against 22.1 per cent and net profit margins of 13.9 per cent as compared to 10.9 per cent in the previous year. These companies rewarded their investors with handsome dividends.

While on one hand the loss of patent and depreciation of rupee against US dollar may boost revenues in the current year, on the other hand, expanded scope of drug price control may have an adverse impact on both revenue and profitability. The global pharmaceutical environment remained volatile and challenging due to lower R&D successes, competition among generic players and gradual decline in realisations. Stringent approval process, quality problems and legal fights also led to increased complexity in the pharma business world.

Despite the above business environment, the state-based listed 50 pharma companies registered healthy performance during 2012-13. The aggregate net sales of Pharmabiz sample of 50 pharma companies improved by 17.9 per cent to Rs 60,775 crore during the year ended March 2013 from Rs 51,549 crore in the previous year. As compared with the sales of leading 100 Pharmabiz pharma companies, the state-based 50 companies contributed 42.6 per cent during 2012-13. Among the 50 companies, 12 companies registered net sales of over Rs 1,000 crore during 2012-13. Further, eight multinational companies have established strong presence in Maharashtra.


The MNCs have rewarded their shareholders with higher equity dividends during 2012-13. GSK enhanced its equity dividend to 500 per cent from 450 per cent and Pfizer declared higher dividend of 325 per cent as compared to Rs 125 per cent. Abbott, Sanofi and Novartis maintained equity dividend at 170 per cent, 330 per cent and 200 per cent respectively.

With better performance and investments in R&D, the share price of several companies are moving to near to their highest levels and offering better returns to shareholders. However, the burden of FCCBs, stringent regulatory norms, drug price control, competition, etc., may put pressure on working in the current year. Further, limited success in R&D activities may also impact growth plans.