Perrigo To Sell Generic Rx Business for $1.55 BnBy
Perrigo has agreed to sell its generic prescription pharmaceuticals business to Altaris Capital Partners, an investment firm, for $1.55 billion, which includes $1.5 billion in cash.
Perrigo first announced plans in 2018 to separate its prescription pharmaceuticals business, which consists primarily of generic drugs, to focus on its over-the-counter (OTC) business. Its prescription drug business consists of topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids, and inhalable products.
As part of the consideration, in addition to paying $1.5 billion in case, Altaris will also assume more than $50 million in potential R&D milestone payments and contingent purchase obligations with third-party partners. The transaction is subject to customary closing conditions and is expected to close by the end of the third quarter of 2021.
The pending divestment would focus Perrigo on its consumer self-care (i.e., OTC) business, which posted 2020 global net sales of $4.1 billion. After the transaction closes, Perrigo expects to have more than $2 billion in cash available to advance its consumer healthcare strategy.
For fiscal year 2020, Perrigo reported consolidated net sales of $5.1 billion, an increase of 5.0% year over year and a reported net loss of $163 million, compared to reported net income of $146 million in the year-ago period.
The company also announced that Murray S. Kessler, CEO and President, has signed a three-year contract extension. Kessler was appointed President, CEO, and Board Member of Perrigo, effective October 8, 2018.