Comprehensive M&A data with integrated detailed company information
Ireland’s Perrigo could become latest biotech firm to sell prescriptions unit
Posted on Friday, 10 August 2018 12:02
As a conclusion to a recent strategic review, the board of Dublin-headquartered Perrigo Company has determined that offloading the prescription pharmaceutical operations is in the best interest of both the firm and its shareholders.
Currently, it is not known how much the group would raise in a sale and potential suitors are yet to come forward.
Perrigo selling the business in question enables the company to focus on its generic pharmaceutical products and on expanding its consumer business.
The group’s board has already agreed to review all value-enhancing options for the unit, including a tax-efficient separation to shareholders, a sale, or a merger and expects a divestment to occur in the second half of 2019.
Perrigo, billed as a global healthcare company, operates alongside large generic pharmaceutical players such as Mylan and Teva in a market which has been suffering in recent years as price erosion puts pressure on the bottom lines of such businesses, a report by Reuters observed.
Just yesterday Mylan said it will be evaluating all strategic options as the current US environment for companies in the industry is tough, while a week ago Bayer sold its prescription dermatology unit to Leo Pharma for EUR 675.00 million.
News of the sale, as well as the group’s second quarter 2018 financials, sent Perrigo’s shares down 10.6 per cent to USD 70.03 yesterday.
The company announced its results for the three- and six-month periods leading to 30th June 2018 at the same time as the sale.
Perrigo missed analyst expectations for both revenue and profit and also cut its full year 2018 guidance as sales, particularly in the prescription drug unit, have slowed.
This business accounts for about a fifth of the group’s sales, which in the opening six months of 2018 stood at a total USD 2.40 billion, a slight decrease from USD 2.43 billion in the corresponding period of 2017.
In addition, Perrigo said it was expanding its over-the-counter growth by entering into a licencing agreement with Merck for exclusive rights in the US to non-prescription nasal spray Nasonex.
© Zephus Ltd