Mylan Reaches $7.2 Billion Deal For Sweden's Meda

Mylan NV said Wednesday that it has agreed to buy Swedish pharmaceutical company Meda AB for $7.2 billion in cash and stock, while the drug maker also reported slower-than-expected growth in its fourth quarter.

Shares of Mylan fell 7.4% to $46.80 a share in after-hours trading.

Mylan had attempted to buy Meda back in 2014 but was rebuffed.

The deal comes after Mylan in November lost its $26 billion hostile bid for Perrigo Co.

Mylan said the deal to buy Meda will build on its portfolio of specialty generic and over-the-counter products. The acquisition will also give Mylan access to new markets like China, Russia and the Middle East.

Mylan expects the deal to contribute up to 40 cents to its per-share earnings in 2017.

Separately, Mylan reported weaker-than-expected growth for its fourth quarter.

For the period ended Dec. 31, Mylan reported a profit of $194.6 million, or 38 cents a share, up from $189.2 million, or 47 cents a share, a year earlier.

Excluding special items, per-share earnings were $1.22 a share. Analysts polled by Thomson Reuterse had expected $1.28 a share.

Revenue rose 20% to $2.49 billion. Analysts had forecast $2.7 billion in revenue.

For 2016, the company said it expects earning, excluding items, of $4.85 to $5.15 a share, bracketing analysts' forecast for $5 a share in earnings. Mylan forecast revenue of $10.5 billion to $11.5 billion, while analysts had expected $10.6 billion in revenue.

Write to Chelsey Dulaney at [e-mail]

(END) Dow Jones Newswires

February 10, 2016 16:55 ET (21:55 GMT)

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