Perrigo to Restructure Branded Consumer Healthcare Biz
Perrigo has announced its intention to restructure the Branded Consumer Healthcare’s Omega Pharma Belgium business, which includes Omega Pharma Belgium NV, Etixx NV, and Biover NV, located in Nazareth, Belgium to improve the financial profile and enhance focus of the business on branded consumer over-the-counter products.
As part of the restructuring, Perrigo has signed a definitive agreement with EuroGenerics, a Brussels, Belgium-based generics pharmaceutical company, to terminate their existing distribution agreement to distribute product in Belgium for Stada Arzneimittel, a Bad Vilbel, Germany-based pharmaceutical company, effective December 31, 2016.
Perrigo has also signed a definitive agreement to sell the Etixx brand and its business effective January 1, 2017, and has allowed for the natural expiration, effective December 2016, of a distribution agreement with Meda, a Solna, Sweden-based specialty pharmaceutical company that was recently acquired by Mylan.
Perrigo has also initiated a consultation process in Belgium to better align the Omega Pharma Belgium organization to current business and market dynamics.
These combined businesses and products are forecasted to achieve calendar year 2016 net sales of approximately $155 million dollars with no contribution to margin. This restructuring plan is only related to Omega Pharma Belgium NV, Etixx NV and Biover NV and only activities related to Omega Pharma Belgium are involved in this plan.
Perrigo’s branded consumer healthcare segment consists of the former Omega Pharma, which was acquired by Perrigo in 2015 for EUR 3.8 billion ($3.97 billion). It develops, manufactures, markets, and distributes OTC brands in the natural health and vitamins, minerals, and supplements in Europe.
Editor’s Note: The above article was updated on Dec. 16, 2016.