Mylan and Abbott amend terms of their $5.3 billion deal

US generic drugmaker Mylan (Nasdaq: MYL) and US drugmaker Abbott Laboratories (NYSE: ABT) have revised the pricing terms of their generics arrangement agreed in July.

Abbott will manufacture and supply products for Mylan after the $5.3 billion deal is agreed by the US Securities and Exchange Commission. Under the terms Mylan will acquire Abbott's non-US developed markets specialty and branded generics business in an all-stock transaction. Abbott will transfer the assets to a new public company organized in the Netherlands, with Mylan subsequently merging with the new entity.

The new Mylan company will also give 110 million shares to Abbott, five million more than the 105 million agreed in the original deal. As a result, upon closing, the former shareholders of Mylan will own around 78% of the outstanding New Mylan ordinary shares, and Abbott and its affiliates will own about 22% of the outstanding New Mylan ordinary shares.