Perrigo to separate its prescription drug unit
Perrigo is planning to separate the company’s prescription drug business so it can continue to focus on expanding its leading consumer business, which includes cold, cough, and allergy products, as well as infant formula for the store brand market.
“The board will consider all value-enhancing options, including a possible tax-efficient separation to shareholders, a sale or merger,” the company said in a press statement.
The Ireland-based company’s prescription business serves patients and health systems with ‘extended topicals’ medications. The portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids and inhalable products.
“Perrigo’s board of directors is committed to shareholder value creation. Perrigo’s consumer and Rx platforms are both well positioned, but they are also navigating divergent industry dynamics with unique strategic, financial and operational opportunities and requirements,” Perrigo chairman of the board of directors Rolf Classon said, in a press statement. “For these reasons, the Board believes the differentiated and diversified Rx business has the potential to realize greater value outside of Perrigo. After a rigorous analysis of the Rx business, we believe that fully pursuing this separation is in the best interest of Perrigo shareholders. We intend to begin the preparations for a separation of the Rx business to shareholders as we continue to analyze numerous value-enhancing options including a possible tax-efficient separation to shareholders, a sale or merger.”
“Today’s announcement to separate the Rx business enables management to focus on expanding our leading consumer businesses while unlocking potential value for shareholders. Committing our energy and capital to the healthcare needs of consumers and our retail and pharmacy partners better positions Perrigo to drive long-term growth. We look forward to providing a comprehensive update on our consumer businesses on a conference call scheduled for September 25, 2018,” Perrigo CEO Uwe Roehrhoff said, in a press statement.
While Perrigo has been subject to certain limitations to efficiently separate its businesses to shareholders since the acquisition of Elan Corporation plc, those limitations are set to expire in December 2018, the company said.
The separation is currently expected to be completed during the second half of 2019, according to the company.
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