Mylan stock broke out Wednesday as rumors circulated on Twitter that the
generic and branded drugmaker might be for sale, possibly to Teva, and as it
announced three drug launches. Mylan stock rose 6.7% Wednesday to 59, briefly
passing a buy point of 59.70 before easing, and Teva Pharmaceutical Industries
gained 2.5%. Analysts were divided about the logic of Teva acquiring Mylan, a
competitor in generic drugs. BMO Capital Markets analyst David Maris said in a research
note that after speaking with Teva, the
rumor that it might acquire Mylan appeared to be "untrue and
baseless."
Teva indicated to Maris that it doesn't comment on speculation, he said in
the note, and "Teva underscored that this issue has been raised repeatedly
in the past year and each time has not been true. Teva also underscored that
nothing has changed in Teva's business development goals, which remain more
focused on branded opportunities, and then within generics, more focused on
emerging markets, and not focused on doubling down on U.S. generics where it
already has sufficient scale."
