According to sources, Teva, which is currently pursuing a takeover of Mylan, rejected an opportunity to purchase Perrigo, Globes reported Monday.
Teva likely rejected the proposal because Perrigo operates primarily in the over-the-counter store-brand market, which is not a focus of the Israeli company.
Mylan is currently pursuing a takeover of Perrigo in an effort to avert Teva's efforts.
Teva has indicated that its offer to acquire Mylan is contingent on the Dutch company abandoning its efforts to purchase Perrigo.
The Israeli drugmaker suggested that most analysts and investors view Teva's bid to purchase Mylan more favourably than Mylan's efforts to acquire Perrigo.
As Teva is developing a generic version of Mylan's EpiPen and Mylan is preparing to launch a generic of the multiple sclerosis drug Copaxone, some experts have suggested that a merger between the companies could raise antitrust concerns.