Law Firm Advising Teva Dismisses Mylan Objections

Kirkland & Ellis LLP punched back at Mylan NV's attempt to disqualify the law firm from advising Teva Pharmaceutical Industries Ltd. in its bid for Mylan, dismissing the effort as an antitakeover tactic.

Kirkland said its limited regulatory and litigation work for Mylan shouldn't prevent it from advising Teva on a $40 billion offer, which Mylan has rejected.

Mylan, based in the Netherlands, sued earlier this month to disqualify Kirkland from the matter. It said its relationship with Kirkland dates back to January 2013 and has given the law firm "wide-ranging access to Mylan's business," including confidential information about its EpiPen allergic-reaction treatment, which Teva is now targeting with a competing product.

Such information could be valuable for a company in Teva's shoes, helping it assess the likelihood of regulatory approvals and determine how much to bid.

Kirkland said it "scrupulously maintained that confidentiality" with internal walls, according to a heavily redacted brief filed late Wednesday in Pennsylvania federal court.

Kirkland, which says Teva engaged it in April about a possible takeover bid for Mylan, said it had a waiver to take on matters adverse to Mylan and has represented parties including Teva and GlaxoSmithKline in litigation against Mylan.

A representative for Mylan said Thursday that the waiver didn't cover Kirkland's current representation of Teva.

The two companies, fierce rivals in the generic-drug business, are locked in a three-way takeover battle. Teva is pursuing Mylan with a $40 billion unsolicited offer, and Mylan is simultaneously chasing a reluctant Perrigo Co. with a $36 billion cash-and-stock bid.

A hearing in the case is set for Tuesday.

Write to Liz Hoffman at [e-mail]

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