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Perrigo Company plc Announces Acquisition Of OTC Products In Australia
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Perrigo Company plc (NYSE: PRGO;TASE) announced that it has acquired a basket of value-brand OTC products sold in Australia and New Zealand from Aspen Global Inc. for $51 million in cash. The products are primarily sold through the mass retail channel and include the Herron® range of analgesics, vitamins and supplements. This basket of products is expected to generate at least $20 million in annual revenue.
Ten weeks ago Prrigo completed its largest ever acquisition of Ireland’s Elan Corporation for $8.6 billion.
Perrigo’s Chairman, President and CEO Joseph C. Papa stated, “The acquisition of OTC products in Australia enhances our position by broadening our product offering and increasing our relevance with the mass retail customers. This deal furthers our strategy to expand our Consumer Healthcare portfolio internationally, while making quality products more affordable for consumers and customers around the world.”
Perrigo also announced that it has signed a series of agreements with Transition Therapeutics Inc. (Nasdaq: TTHI), its Canadian partner, to progress the clinical development of ELND005 (Scyllo-inositol) in a number of important indications including Alzheimer’s disease, bipolar disorder, and Down Syndrome.
Transition Therapeutics will acquire all of the Perrigo Irish subsidiary which is developing the drug. Perrigo will be eligible for up to $40 million, subject to the drug’s development milestones, as well 6.5% royalties in future sales.
Perrigo will acquire 7% of Transition Therapeutics at $6.65 per share for $15 million. Transition Therapeutics’ share price rose 7.6% on Friday to $7.20, giving a market cap of $213 million.
Perrigo develops, manufactures and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, primarily in the United States, United Kingdom, Mexico, Israel and Australia, as well as more than 40 other key markets worldwide, including Canada, China and Latin America.
