US generic drugmaker Mylan Inc is in advanced talks to acquire a multibillion-dollar portfolio of established products from Abbott Laboratories, people familiar with the matter said. The proposed transaction, which is in late-stage discussions, would see Mylan acquire a big chunk of Abbott's Europe-based mature drugs for several billion dollars, said the people, who asked not to be named because the matter is not public.
The acquisition of the foreign assets, according to some of the people, could also allow the US company to change its tax address to overseas, a practice known as inversion that has become popular among healthcare companies seeking to cut their tax bills and gain access to cash held offshore. The exact value of Mylan's bid could not be learned, but people familiar with the matter previously told Reuters that Abbott was looking to sell a portfolio of mature drugs that could fetch more than $5 billion.
A deal could come as soon as next week, but the discussions are continuing and could still fall apart, the people cautioned. Abbott's established pharmaceuticals division is headquartered in Basel, Switzerland and had 2013 sales of roughly $5 billion. About half of the sales come from emerging markets, and the remainder from other international markets. Representatives for Mylan declined to comment, while Abbott did not respond to requests for comment. A potential deal with Abbott would come after Mylan's failed attempt to buy Swedish drugmaker Meda AB earlier this year. Meda in April rejected Mylan's revised $6.7 billion takeover bid, saying its biggest shareholder did not back a deal.