GENE ONLINE|News &
Opinion
Blog

2021-03-04|

Perrigo Splits Businesses, Offloads Generic Division to Private Equity

by Ruchi Jhonsa
Share To

Over the past 18 years or so, Perrigo, headquartered in Ireland, has made several changes in the company’s structure to make its investors happy. One of which included talks about separating the business of the company’s prescription pharmaceutical drugs (Rx) from its consumer self-care business in 2018. However, with its over-the-counter business treading water, Perrigo decided to stay from the promise. Nevertheless, it remained committed to selling off the business or spinning it off as a separate company.

After holding for almost 2 years, on March 1st, the company finally decided to execute the split and made a deal with Altaris Capital who will take over Perrigo’s Generic Rx pharmaceutical business. The deal, which concluded at $1.55 billion, is expected to close by the end of summer.

With the sale of the Generic Rx business, Perrigo is officially a “pure-play global consumer self-care company, that is expected to gain $4 billion in revenues every year. Plus, it will have more than $2 billion in cash to grow that business, preferably through smart M&As.

 

Why the Split?

Perrigo’s Rx business contains a variety of extended topical medications in different dosage forms, such as creams, foams, mousses, gels, liquids, and inhaled products. On the other hand, its consumer self-care business includes over-the-counter medications for cough, cold, allergy, gastrointestinal problems, smoking cessation, infant formula, and oral care.

While Perrigo’s “consumer and Rx platforms are both well positioned, they are also navigating divergent industry dynamics with unique strategic, financial and operational opportunities and requirements,” said Rolf Classon, Chairman of Board of Directors in 2018. “For these reasons, the Board believes the differentiated and diversified Rx business has the potential to realize greater value outside of Perrigo.”

 

Future of Perrigo’s Rx Business

Altaris is a healthcare investment firm with $5.2 billion of equity under management. It targets companies that deliver value to the healthcare system by improving patient outcomes, eliminating unnecessary costs, and increasing efficiency. Altaris’ investment in Perrigo’s Rx business-helps deliver affordable prescription products to patients-aligns with its values. Perrigo’s prescription business generated $236 million in sales for the fourth quarter of 2020.

Under Altaris’ guidance, Perrigo Rx will become a standalone company, which will focus on developing and marketing affordable pharmaceutical products. It will be renamed and headquartered in the United States.

“I am thrilled that we are working with Altaris to establish Perrigo’s Rx business as an independent company,” said Sharon Kochan, President of Rx. “This is a very important and exciting milestone that will enable us to focus on executing our ambitious plans and growth strategy. Altaris’ healthcare specialization and experience with similar business separations will bring unique, fresh, and relevant perspectives as we embark on the next phase of our journey.”

Related Article: Tenaya Raises $106 Million Series C Round To Fight Heart Disease

 

©www.geneonline.com All rights reserved. Collaborate with us: service@geneonlineasia.com
Related Post
Investigate the Current Status of Rivaroxaban Generic Drug Application in China
2023-03-01
If It Works, Replicate It: Generic COVID-19 Drugs
2022-03-28
First Generic for Dry-eye Gets U.S. FDA Nod
2022-02-04
LATEST
Previewing AACR 2024 With Select Pre-Meeting Highlights
2024-03-28
Roche Delivering on Malaria Screening Solutions for Blood Donation
2024-03-28
Innovating Cancer Treatment: The Role of ADC Technology at Nona Biosciences
2024-03-28
BIO CHINA 2024 Brings Biotech Experts and Industry Elites Together for Innovation
2024-03-27
Galderma’s Strong European IPO Debut
2024-03-26
Markets and Mergers: Boston Scientific and Axonics Shake Hands on Deal
2024-03-25
Discover the Next Billion-Dollar Unicorn at the Biotech Innovation Funding Networking Event
2024-03-21
EVENT
2024-04-06
Biotech Innovation Funding Networking
Los Angeles, USA
Scroll to Top