Mylan options trading rises on takeover speculation, court ruling
Bullish Mylan Inc. options trading rose to the highest since July 2009 on speculation that the biggest U.S. maker of generic drugs may be acquired and after a U.K. judge ruled that rival Cephalon Inc. can’t prevent it from selling a sleep-disorder treatment.
Almost 40,000 calls to buy the stock changed hands, 13 times average and eight times the number of puts to sell on Friday. Mylan shares rose 3.1 percent to $19.85.
The options trading was spurred by “unsubstantiated takeover rumors,” strategists at Susquehanna International Group LLP in Bala Cynwyd, Pa., wrote in a note to clients. Michael Laffin, a spokesman for Canonsburg-based Mylan, didn’t return a call for comment.
Cephalon, maker of the sleep-disorder drug Provigil, can’t stop Mylan and Orchid Chemicals & Pharmaceuticals Ltd. from selling generic versions of the medicine in Britain before a patent trial, the High Court in London ruled.