Generic drug manufacturing titan Mylan announced on Wednesday that it has made a $28.9 billion bid to purchase Perrigo Company in a cash-and-stock transaction to create a diversified, global pharmaceutical leader with an industry-leading commercial and operating platform.

Pharma Giant Mylan Makes $29 Billion Bid For Perrigo

Analysts note that this is just the latest in a series of recent M&A transactions in both the pharmaceutical and biotechnology sectors.

Perrigo shares are up over 25% on the news in Wednesday trading, and Mylan shares are also up around 5%.

More on the Mylan – Perrigo deal

Mylan is offering $205 a share in cash and stock for Perrigo, according to the statement released on Wednesday. That is a more than 25% premium over yesterday’s closing price.

Mylan has already been a part of the takeover trend in the pharma industry, after purchasing the non-U.S. operations of Abbott Labs for $5.3 billion last year in a bid to move its tax domicile to the Netherlands.

Of note, Perrigo undertook a similar tax inversion deal back in 2013, when it acquired Elan so it could be domiciled in Dublin.

The statement from the firms noted the bid is subject to confirmatory due diligence, which may be waived by Mylan at its discretion.Moreover, this is not an announcement of a firm intention to make an offer under rule 2.5 of the Irish Takeover Panel Act, 1997, Takeover Rules 2013, and there are no guarantees that any offer will be made, even if the due diligence pre-condition is satisfied or waived.

Statement from Mylan chairman

The Chairman of Mylan’s BoD Robert J. Coury noted, “This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination. This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies.  We have great respect for Perrigo’s board and management team and what they have built.  We look forward in the weeks ahead to working with them to capitalize on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry.”