Replies to post #46597 on Biotech Values

[DewDiligence]

>Thoughts on Coury aside are you familiar with the Merck KG Generic business, do you think it is a good deal for MYL or just "empire building" at the expense of diluting shareholders?<

I think Empire Building is a factor in this deal, which is another way of saying that MYL is paying too much.

Coury has been promising Wall Street for some time he would engineer something big. The Merck KG acquisition certainly qualifies by moving MYL into the #3 position in generics worldwide, leapfrogging BRL. After being outmaneuvered with respect to Ivax and Pliva, Coury was afraid of being lambasted by the Street if he had missed out on one of the few remaining large-scale opportunities.

>I thought they may seek to diversify outside or perhaps get into Bio-generics.<

MYL will undoubtedly be a player in biogenerics (they are one of the answer choices in #msg-18672801), but they are IMO not as well positioned in that business as NVS, TEVA, BRL, MNTA, and GTCB.

[DewDiligence]

Mylan’s CEO, Robert Coury, has a big mouth. But he
backs it up with a big open-market stock purchase.

http://biz.yahoo.com/ap/070615/mylan_labs_insider_trading.html?.v=1

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Mylan Labs CEO and Director Buy Stock As Share Price Lags

Friday June 15, 4:28 pm ET

WASHINGTON (AP) -- Mylan Laboratories Inc. Vice Chairman and Chief Executive Robert J. Coury made his first open-market stock purchases this week, buying $648,545 worth of his company's stock.

Coury's stock purchases, as well as a $74,600 purchase by director Rodney L. Piatt, come as Mylan's stock has lost more than 17 percent in value since it announced its intention to buy the Merck KGaA generic drug unit last month for $6.7 billion, which is more than Mylan's own market capitalization.

Coury and Piatt couldn't be reached immediately for comment.

Coury's purchases of a total of 35,000 shares on Thursday and Friday for an average price of $18.53 each are his first since he became chief executive of the Canonsburg, Pa., pharmaceutical company in 2002, according to data provider Washington Service. Piatt's purchase of 4,000 Mylan shares for $18.65 each on Wednesday is also his first at the company.

After the recent transactions, Coury has direct ownership over 328,263 shares and owns an additional 4,735 shares through his 401(k) plan, according to a filing with the Securities and Exchange Commission. Piatt now owns 10,000 Mylan shares, according to a separate filing.

Mylan shares rose 9 cents to $18.55 on Friday.
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