Dublin-based Perrigo has rejected a $29 billion bid from generics group Mylan.

The company said its board unanimously rejected the $205 per share offer, saying the bid substantially undervalued the company and did not reflect its growth potential.

Perrigo said Mylan’s offer did not take into account Perrigo’s €2.48 billion acquisition of Omega Pharma and new products that are expected to generate about $1 billion in revenue.

"Continued execution by the management team against our global growth strategy will deliver superior shareholder value," Perrigo chief executive Joseph Papa said in a statement.

The company, which acquired Irish domicile after its takeover of the rump of Elan in 2013 for $8.6 billion, recommended shareholders take no action on Mylan's cash-and-stock proposal, which was extended in the form of a letter earlier this month and wasn't an official bid.

The announcement came as some of Netherlands-based Mylan's top investors, including Paulson & Co, encourage its board of directors to consider a separate takeover proposal from rival Teva Pharmaceutical Industries, according to sources.

Teva unveiled an unsolicited $40 billion takeover proposal on Tuesday for the Mylan.

Perrigo separately reported third quarter figures Tuesday night showing a 4 per cent rise in net sales year-on-year to $1.05 billion in the three months to March 28th. The company said the increase was attributable primarily to $81 million in new product sales and to $29 million in incremental royalty sales of Elan’s blockbuster multiple sclerosis therapy Tysabri.

Royalty revenue from Tysabri came to $82 million, driven primarily by a higher 18 per cent royalty rate, compared to 12 per cent last year.

Excluding the effect of the debt taken on and shares issued as part of the Omega deal, the company said adjusted net income in the quarter was 41 per cent higher than a year previously at $249 million. Adjusted diluted earnings per share rose by the same amount to $1.85.

On an unadjusted basis, the Omega-related charges saw the Perrigo report a net loss of $95 million, or 67 US cents per share.

The company which is moving to a calendar fiscal year, said it expects adjusted earnings per diluted share to fall somewhere between $7.50 and $8.

That would be an increase of 20-28 per cent over adjusted earnings for 2014.

Mr Papa said the figures were "evidence of the strength of both our management team and our unique business model" in what was, post the Omega Pharma deal, a top five global over the counter medicines group. – Additional reporting Reuters / Bloomberg