Connect with us

Hi, what are you looking for?

Jewish Business News

World News

Bloomberg, Globes, Take Glass Half Full, Half Empty Views of Perrigo Sale

Pharmaceutical company Perrigo has yet to be sold and already major business publications are speculating on what its sale will mean to the TASE.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

Perrigo generic drugs

In contrast with a report made by Israel’s Globes business newspaper, claiming that the sale of Israel’s pharmaceutical company Perrigo could spell disaster for the Tel Aviv Stock Exchange, Bloomberg is reporting that the announcement of such a deal has sent the Israeli exchange to a three week high.

As of now, Perrigo has only retained the services of an investment bank to look into the possibility of a merger or a buyout by another pharmaceutical company. According to Globes, it hopes to get a price of up to 25% more than its market cap.

Tuesday afternoon, the benchmark TA-25 Index (TA-25) was up to 1, 399.23, on its way to its highest level since June 24. Perrigo’s shares went up 7.8% to $157. The stock traded at 2.5-times the three-month average daily volume, and is looking for its largest increase since August 2011. Its TASE market cap is $19.41 billion.

Steven Shein, a trader at Tel Aviv’s Psagot Investment House told Bloomberg, “The market is rising based on global strength as well as Perrigo, which is closing a parity gap on rumors of an acquisition. This, together with talks of a ceasefire, is pushing the market up.”

That ceasefire, unfortunately, did not take place. But the recent fighting between Israel and Hamas has not deterred investment in Startup Nation’s new companies.

Perrigo is traded both on the TASE and the New York Stock Exchange where it rose 8.7% to $158.9 giving it a market cap of $21.3 billion.

Globes, however, took a more pessimistic approach, looking towards the possibility that the sale of Perrigo could lead to the company being delisted from the TASE. Perrigo contributes 10.3% of the trading volume on the Tel Aviv 25 Index of Israel’s largest companies, second only to Teva Pharmaceutical Industries Ltd. And so, as Globes put it, “this would be a painful blow for the Israeli stock market.”

Perrigo was founded in 1887 by Luther Perrigo. Today, it leads the generic over-the-counter drug market in the US. It markets its products under the private labels of the stores that sell the firm’s drugs.

The company also has a baby food venture, as well as a division in the veterinary field. It is known as a habitual acquirer of companies. Its largest acquisition was the Israeli firm Elan, at the end of last year, for $8.6 billion in cash and shares.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.