Perrigo emerges from the prescription drug market: sells Generic RX – the capital market

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Perrigo
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Announced today that it is selling to Altris the pharmaceutical division Generic RX for $ 1.55 billion, of which the company will receive $ 1.5 billion in cash. In doing so, the company has announced that it will focus on consumer products as part of the transformation it is undergoing. As part of the consideration, Altris will undertake to pay over $ 50 million in potential R&D milestone payments and contingent acquisition debts of the Rx Division to a third party. The deal is subject to acceptable closing conditions and is expected to close by the end of the third quarter.

The Rx’s products serve patients and healthcare systems through the supply of a variety of drugs, most notably ‘topical preparations’. The company’s specialized and balanced portfolio includes topical generic drugs in multiple dosage forms, such as ointments, creams, foams, lotions, gels, solutions and inhalers.

Perrigo CEO and President Murray Kessler said the sale would help the company focus on its global strategy. This deal establishes Perrigo as a global consumer-focused consumer goods company with industry-leading fundamentals, ”Kessler said.

Perrigo will have a focused portfolio with over US $ 4 billion in revenue in activities that focus on growing trends in personal health management and individual well-being. This deal allows the company financial flexibility and increased forecasting capabilities, “he added.

“Once the transaction is completed, Perrigo will have over $ 2 billion in cash available to advance the company’s strategy through smart and prudent mergers and acquisitions that ensure a growing revenue stream. This is an exciting day for Perrigo. ”

Garricai Visibility, managing partner at Altris said that “in light of our experience in the pharma industry and past successful experience in managing separation from companies, we believe we are fit and willing to support the Rx division in becoming an independent company that advances its goals of developing, manufacturing and marketing specialized drugs.

Surprisingly – or not – the amount of the sale is almost identical to the $ 1.6 billion fine imposed on the company in Ireland last November, after losing an appeal to the Irish tax authority in a case pending since 2013 in connection with intellectual property tax purchase of Tisbury MS. .