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Perrigo acquires rights to Fera Pharmaceuticals line for $93M
Perrigo has acquired the rights to produce an ophthalmic sterile ointment and solution products portfolio from Fera Pharmaceuticals of Long Island, N.Y., for an upfront cash payment of approximately $93 million.
The deal also includes potential contingent payments totaling approximately $36 million, depending on Perrigo securing additional product rights from Fera.
The Allegan-based global pharmaceutical company said the acquired Fera portfolio, including nine new approved drugs, generated more than $30 million in sales during 2012.
In addition, Perrigo expects to receive a tax benefit as a result of the acquisition, the net present value of which is estimated to be approximately $20 million.
The acquisition is expected to add more than 12 cents to Perrigo’s adjusted EPS and more than 4 cents to its GAAP EPS in FY2014, while adding immediately to the company’s return on invested capital.
Perrigo Chairman and CEO Joseph C. Papa said the ophthalmic category “has been one of high strategic interest to Perrigo” in its prescription drug portfolio.
“The breadth of the Fera portfolio allows us to become immediately relevant to patients and physicians across the country seeking cost-effective alternatives for the treatment of common ocular conditions,” said Papa.