Perrigo Company has agreed to sell its US Vitamins, Minerals & Supplements (VMS) business to International Vitamin Corporation (IVC). The transaction is subject to customary closing conditions and is expected to close by early August. Financial terms were not disclosed.

Perrigo CEO John T. Hendrickson commented, “Our decision late last year to divest the US VMS business was part of our ongoing portfolio assessment and ensures that we remain focused on our most profitable and strategic businesses. Having explored various options over the past several months, we are pleased to have reached an agreement to sell the business to IVC. We look forward to working with the IVC team to seamlessly transition the business and ensure that our customers continue to receive exceptional service during this transitional period. Finally, we would like to take this opportunity to thank the more than 300 Perrigo employees who are dedicated to the VMS business for all of their contributions to Perrigo and to wish them all the very best going forward.”

Perrigo develops, manufactures, and markets over-the-counter (OTC) and prescription generic and specialty pharmaceuticals, nutritional products, and active pharmaceutical ingredients and has a specialty sciences business comprised of assets focused predominantly on the treatment of multiple sclerosis (Tysabri (natalizumab)), from which it receives royalties on in-market sales from Biogen as part of Perrigo's $9.5 billion acquisition of Elan in 2013. Perrigo posted net sales for calendar year 2015 of $5.35 billion, an increase of 28% on a reported basis. On a constant currency basis, net sales for the year increased 30% over calendar year 2014, attributable primarily to $1.03 billion related to the inclusion of the branded consumer healthcare segment and 14% growth in the prescription segment on a constant currency basis. Consumer healthcare is its largest segment with 2015 sales of $2.82 billion and closely followed by prescription drugs at $1.07 billion and branded consumer healthcare (which is composed of Omega Pharma, which Perrigo acquired in 2015) at $1.03 billion. It specialty science business accounted for $334 million in 2015 revenues and other revenues were $98 million.

Source: Perrigo