Perrigo acquisition by Mylan endorsed by Abbott shareholders

Perrigo's planned acquisition by Mylan has moved a step closer after the deal was endorsed by key Mylan shareholder Abbott Laboratories.

The medical technology firm – a longtime commercial partner of Mylan and its single largest shareholder – has stated its intent to vote its 14.5 percent stake in the business in favour of the proposed acquisition of Perrigo.

Abbott previously chose Mylan to acquire its developed markets branded generic pharmaceuticals business due to its strong growth prospects, which it believes will be reinforced by the Perrigo purchase.

Miles White, chairman and chief executive officer of Abbott, said: "We believe Mylan's standalone strategy and acquisition of Perrigo will further enhance its platform, is strategically compelling, value enhancing for shareholders and offers a clear path to completion."

This could mark a key transformational milestone for Perrigo, which purchase a number of leading over-the-counter brands from GlaxoSmithKline earlier this month.

It also makes it less likely that Teva will be able to close the deal to acquire Mylan that it has been pursuing for some time, as the takeover of Perrigo would considerably strengthen Mylan's position as a standalone organisation.