Perrigo to acquire OTC brands from GSK
In the areas of nicotine replacement therapy, cold and flu, and cold sore management
Perrigo is to purchase several over-the-counter (OTC) brands from GlaxoSmithKline, in cash for an undisclosed sum.
The sale is part of GSK's commitment to the regulators to divest these businesses in the formation of the company's consumer health joint venture with Novartis.
Perrigo itself is involved in a takeover battle that involves Mylan and Teva Pharmaceutical Industries.
Under the new agreement with GSK, Perrigo will purchase GSK's NiQuitin nicotine replacement therapy business, primarily in the European Economic Area (EEA) and Brazil, and Novartis's legacy Australian NRT business, including the Nicotinell brand. The company will also buy OTC brands Coldrex (cold and flu treatment) across the EEA, and Panodil (pain relief), Nezeril (nasal decongestant), and Nasin (nasal decongestant) in Sweden; plus Novartis's legacy cold sore management products primarily in the EEA, marketed under the Vectavir, Pencivir, Fenivir, Fenlips and Vectatone brands.
Net sales of these brands in 2014 were approximately $110m.
Perrigo is uniquely positioned to maximise the potential of these brands
Joseph Papa, Perrigo's Chairman, President and CEO said the company is building on the global platform it established with last November's US$4.5bn acquisition of Omega Pharma. Perrigo aims to capture a bigger share of the $30bn European OTC market with the purchase of GSK's portfolio, Papa said.
He added: 'Perrigo is uniquely positioned to maximise the potential of these brands by leveraging Omega Pharma's leading European commercial infrastructure, pan-European distribution network, strong brand-building capabilities, and exceptional management team.'
This announcement also follows Perrigo's recent acquisition of European OTC dermatological product, Vitasil.
'With our global platform in place and our robust balance sheet, we are ideally positioned to execute immediately accretive deals, such as this one, that will have a multiplier effect on our growth,' Papa said.
The new deal has been unanimously approved by the Boards of Directors of Perrigo and GSK, and is expected to close in the third quarter of 2015.