Teva Proposes to Acquire Mylan

Teva CEO Erez Vigodman

The Israeli company Tuesday proposed an $82-per-share buyout, split 50/50 between cash and stock--an offer CEO Erez Vigodman called "compelling" for both Teva and Mylan stockholders.

A combined company would create a generics superpower, Teva figures, with a pipeline of more than 400 pending generic drug applications at the FDA. That includes more than 80 first-to-files, which can give one drugmaker a lock on generic sales for 6 months after a patent expiration.

Together, Teva and Mylan would also boast advanced manufacturing technologies that deliver hard-to-produce drug formulas, not to mention the globe's leading API division, the Israeli company says.

And don't forget specialty drugs: Between them, the two drugmakers could show off a $10 billion business in that department, with leading positions in multiple sclerosis, respiratory, pain, allergy meds and other areas.