Perrigo sells its UK generic drug business Posted 24/07/2020

Perrigo Co Plc (Perrigo) has sold its generic prescription drug business to a private equity firm in a deal worth US$195 million.

Perrigo which is headquartered in Dublin, Ireland but makes most of its sales in the US, realized over US$50 million in net sales in 2019.

On 19 June 2020, the firm reached an agreement to sell its UK generics business to a private equity firm, also based in the UK. The deal is worth GBP 156 million (US$195 million) and was signed and closed on the same day.

The generics business, Rosemont Pharmaceuticals, is headquartered in England and specializes in liquid medicines for patients with swallowing difficulties.

Products are in a range of therapeutic categories including treatments for the cardiovascular, gastrointestinal, endocrine and central nervous systems, as well as anaesthetics and anti-infection agents.

Perrigo CEO and President Murray S Kessler said Perrigo are pleased to have reached the agreement, adding:

‘This divestiture, which was accomplished at an attractive ten times adjusted operating income multiple, is an example of Perrigo's commitment to our transformation to a consumer-focused self-care company while remaining good stewards of shareholder value. We thank the Rosemont employees for their service to Perrigo and are confident the business will do well under new ownership’.

The company is expected to focus on its over-the-counter medication business going forward. It was previously to be acquired by Mylan, although the deal did not go ahead after less than half of Perrigo shareholders tendered their shares [1].

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Reference
1. GaBI Online - Generics and Biosimilars Initiative. Mylan will not be acquiring Perrigo [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2020 Jul 24]. Available from: www.gabionline.net/Pharma-News/Mylan-will-not-be-acquiring-Perrigo

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Source: Perrigo

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