Mylan stock jumped Thursday on a report the Carlyle Group could be prepping to bid on it following the pharmaceutical company’s lackluster first-quarter sales.
The report first emerged from Intereconomia.com which cited market sources. The group has reportedly been in negotiations to raise $3.6 billion to buy a piece of Mylan (MYL). Now, according to Intereconomy.com, the group is seeking in excess of $11.8 billion to fund a takeover.
Mylan Stock Under Pressure
Before its first-quarter earnings report on Tuesday, Mylan had a market cap north of $14.5 billion. But Mylan stock tumbled nearly 24% after quarterly sales slipped 7% to $2.5 billion and missed forecasts for $2.69 billion. Now, Mylan is worth close to $11.6 billion.
The rumored potential bid comes at a volatile time for Mylan. The pharmaceutical company is undergoing a strategic review, and the U.S. market remains especially challenging. Both North American and European sales declined in the first quarter.
Mylan isn’t alone in that regard. Analysts say pressure on generic drug prices is easing, but at a slow pace. On May 2, the largest generic pharmaceutical company, Teva Pharmaceutical (TEVA), better-than-expected first-quarter sales that still fell 15%.
The Carlyle Group declined to comment in an email to Investor’s Business Daily. Representatives of Mylan didn’t immediately return requests for comment.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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