Mylan to buy Abbott business line in $5.3B deal - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Mylan to buy Abbott business line in $5.3B deal

Posted: Updated:
  • NationalMore>>

  • Prayers for man who died in NY police custody

    Prayers for man who died in NY police custody

    Thursday, July 24 2014 2:13 AM EDT2014-07-24 06:13:20 GMT
    Gospel music mixed with cries of grief at a Brooklyn church filled to overflowing with mourners for the funeral of a man who died in police custody after an officer placed him in an apparent chokehold, and his...
    Gospel music mixed with cries of grief at a Brooklyn church filled to overflowing with mourners for the funeral of a man who died in police custody after an officer placed him in an apparent chokehold, and his family was...
  • Ohio woman to be sentenced in slave labor case

    Ohio woman to be sentenced in slave labor case

    Thursday, July 24 2014 2:02 AM EDT2014-07-24 06:02:12 GMT
    A northeast Ohio woman convicted along with her boyfriend of enslaving a mentally disabled woman in their home for nearly two years will be sentenced in federal court in Youngstown.
    A northeast Ohio woman convicted along with her boyfriend of enslaving a mentally disabled woman in their home for nearly two years was scheduled to be sentenced in federal court in Youngstown.
  • JFK returns to old look in new collectors' coins

    JFK returns to old look in new collectors' coins

    Thursday, July 24 2014 1:44 AM EDT2014-07-24 05:44:36 GMT
    President John F. Kennedy is getting his old look back on new collectors' coins.
    President John F. Kennedy is getting his old look back on new collectors' coins.

PITTSBURGH (AP) - The generic drugmaker Mylan is buying Abbott Laboratories' generic-drugs business in developed markets for stock valued at about $5.3 billion.

Mylan said Monday that the deal will diversify and expand its business outside the U.S. The combined company will be organized in the Netherlands, which will help reduce its tax expenses. The company will keep its headquarters near Pittsburgh.

The deal is expected to lower Mylan's tax rate to approximately 20 percent to 21 percent in the first full year, and to the high teens after that.

Several other U.S. companies are using mergers to reincorporate in countries with lower tax rates. These moves are raising concerns among U.S. lawmakers because they can cost the federal government billions in tax revenue.

The business to be acquired by Mylan encompasses more than 100 generic and specialty drugs sold in Europe, Japan, Canada, Australia and New Zealand. Some of the products include Creon, Influvac, Brufen, Amitiza and Androgel. It also include manufacturing plants in France and Japan.

The portfolio of products accounted for about $2 billion in sales last year.

Abbott is keeping its branded generic drug business in emerging markets. That business had 2013 sales of $2.9 billion. It is also keeping its other businesses and products in developed markets.

Abbott will own about 21 percent of the combined Mylan company - which will be called Mylan NV - but does not intend to remain a long-term shareholder. Shares of Mylan NV will trade on the Nasdaq under Mylan's existing ticker symbol, "MYL."

The transaction is expected to about double Mylan's revenue in Europe by strengthening its presence in countries such as Italy, the U.K., Germany, France, Spain and Portugal. It also is expected to more than double Mylan's revenue in Canada and Japan, and strengthen its business in Australia and New Zealand. The deal also gives Mylan a meaningful presence in the specialty and branded generics market in Central and Eastern Europe.

The deal is expected to close in early 2015. It is expected to immediately add to Mylan's earnings, to the tune of about 25 cents per share in adjusted earnings in the first year, increasing through 2018.

Mylan Inc. is based in Canonsburg, Pennsylvania.

Mylan's stock added $2.10, or 4.2 percent, to $52.30 in premarket trading, while shares of Abbott gained 94 cents, or 2.3 percent, to $42.24 .

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • Gaza fighting rages amid cease-fire bid

    Gaza fighting rages amid cease-fire bid

    Thursday, July 24 2014 2:13 AM EDT2014-07-24 06:13:14 GMT
    Israeli tanks and warplanes are pummeling the Gaza Strip as U.S. and other diplomats push for a cease-fire with Hamas militants.
    Israeli tanks and warplanes are pummeling the Gaza Strip as U.S. and other diplomats push for a cease-fire with Hamas militants.
  • 12 children, man die in train-bus crash in India

    12 children, man die in train-bus crash in India

    Thursday, July 24 2014 2:13 AM EDT2014-07-24 06:13:02 GMT
    Police say 13 children have been killed when a train crashed into their school bus at an unmanned railroad crossing in southern India.
    Twelve children were killed Thursday when a train crashed into their school bus at an unmanned railroad crossing in southern India, police said.
  • Taiwan airline suspects bad weather caused crash

    Taiwan airline suspects bad weather caused crash

    Thursday, July 24 2014 1:42 AM EDT2014-07-24 05:42:49 GMT
    Stormy weather on the trailing edge of Typhoon Matmo was the likely cause of a plane crash on a Taiwanese island that killed 48 people, the airline said Thursday.
    Stormy weather on the trailing edge of Typhoon Matmo was the likely cause of a plane crash on a Taiwanese island that killed 48 people, the airline said Thursday.