Actavis boosts Pliva bid to $1.85 billion

The increased bid of HRK630 in cash per share represents an 11% increase on the previous bid of $1.6 billion that Actavis made last month. Pliva said in a statement that it is “giving careful consideration” to the revised offer, but also noted that it still does not consider the offer to “fully reflect the value of the company”.

The Croatian generic drugs maker also said that it is in the process of considering its strategic options, including preliminary discussions with a “number of other interested parties,” together with its financial adviser Deutsche Bank.

Meanwhile, Robert Wessman, CEO and president of Actavis has indicated that the revised bid represents his company’s final offer.

“If we can not start to work with Pliva’s management and advisors very soon we will be forced to pursue our strategic objectives by looking for opportunities elsewhere,” said Mr Wessman.

The proposed merger of the companies would be part of the broad trend in the generic pharmaceuticals industry of rapid consolidation, with scale, geographic reach, product pipeline depth and access to low-cost manufacturing, seen as vitally important for future success in the market.