Mylan (MYL) Stock |Rallies 13% On Failed Hostile Bid


Mylan N.V. (NASDAQ: MYL)


On Friday, the generic drug maker, Mylan saw its stock surge on news that shareholders of its hostile takeover target, Perrigo (PRGO) had rejected the $26 billion offer. Perrigo management and several analysts have opined for several months that the merger would be bad for shareholders of both companies. Mylan’s stock price action on Friday seemed to support those opinions.


CEO Comments

Explaining that the Perrigo acquisition was not essential for future success, Mylan CEO Heather Bresch, stated:

“Mylan’s focused approach to organic and inorganic growth has delivered a 27% compound annual growth rate in adjusted diluted earnings per share (EPS) for shareholders since 2008, while strategically and consistently expanding our business. Our recent financial results continue to demonstrate the power of our stand-alone platform, with double-digit growth in our legacy business, as well as enhanced double-digit growth from the EPD business.”  Investors Business Daily

MYL Technical Analysis

MYL 2015-11-13-TOS_CHARTS

During 2015, Mylan stock had a few large moves that were fueled by potential mergers.  On April 8, Mylan’s bid for Perrigo sent the stock from $59.57 to a high of $72.62. Soon after on April 21, MYL shot up another $8.64 to an all time high of $76.69 on news of an unsolicited takeover bid from Teva Pharmaceuticals (TEVA). On July 27, TEVA dropped its takeover bid sending MYL stock down more than $10 per share to $55.40. From that point the stock trended down to a low of $37.59 on October 22.

On Friday, MYL gapped up to open above recent resistance near $47.60 on big volume. While the market was selling off hard, MYL continued to break above pre-market levels, reaching a high of $49.49, which has been resistance since September 1. A volume move above this level for more than thirty minutes will be bullish and opens the possibility that buyers will take it to the next big resistance near $52.70. The $48.40 support area was tested five times during the day and held each time. A break of this level could begin a bearish move with lower support levels near $48, $47.65, $46.90 and the low of the day at $46.48. As always, trades based on resistance and support levels need to be confirmed by VWAP, the 9-day and 20-day exponential moving averages.


Mylan N.V. Company Profile

Mylan N.V., formerly Mylan Inc., is a global pharmaceutical company, which develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals. Mylan operates in two segments: Generics and Specialty. The Company’s generic pharmaceutical business is conducted primarily in the United States and Canada (collectively, North America); Europe, the Middle East, and Africa (collectively, EMEA); and India, Australia, Japan and New Zealand (collectively, Asia Pacific). Its specialty pharmaceutical business is conducted by Mylan Specialty L.P. (Mylan Specialty). The Company’s API business is conducted through Mylan Laboratories Limited (Mylan India), which is included within the Asia Pacific region in its Generics Segment. Mylan provides products to customers in approximately 140 countries and territories.  Google Finance