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Perrigo acquires US rights to drug line for $380M
Over-the-counter and prescription drug maker Perrigo is acquiring the U.S. rights to an AstraZeneca drug line for Crohn’s disease for $380 million.
Dublin-based Perrigo, which has its North American headquarters in Allegan, said today that it will acquire Entocort, or budesonide, prescription capsules as well as the authorized generic capsules marketed by Par Pharmaceuticals within the U.S. from AstraZeneca.
The transaction is expected to immediately exceed Perrigo's return on invested capital, or ROIC, threshold and be more than $0.35 accretive to 2016 adjusted earnings per share, after the exclusion of estimates for intangible amortization, transaction costs and integration-related expenses.
The transaction is expected to close by the end of 2015, subject to customary closing conditions.
"Growing Rx portfolio"
Entocort is a gastroenterology medicine for patients with mild-to-moderate Crohn's disease.
Perrigo said the drug has exhibited "consistent revenue streams" since the launch of limited generic competition in 2011.
Joseph Papa, Perrigo chairman and CEO, said Entocort fits well within Perrigo’s growing Rx portfolio and “serves as yet another example of our ability to execute on our Base Plus Plus Plus strategy.”
“We are excited to add this margin-enhancing asset to our already robust Rx portfolio,” Papa said.
He said Perrigo remains committed to pursuing accretive transactions that deliver “superior value” for shareholders.
"Our agreement with Perrigo completes the global divestment of Entocort, emphasizing our strategic focus on three main therapy areas and providing further supply chain simplification,” said Luke Miels, EVP, Global Product and Portfolio Strategy, Global Medical Affairs and Corporate Affairs, AstraZeneca.