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Perrigo plans to 'separate' business unit
A drug maker in the region plans to "separate" its prescription pharmaceuticals business from the company.
Dublin-based Perrigo, which has its North American headquarters in Allegan, said today its board of directors approved a plan to separate its Rx business as part of a strategic portfolio review.
The board will consider “all value-enhancing options,” including a “tax-efficient separation to shareholders,” sale or merger.
Uwe Roehrhoff, Perrigo CEO, said he is “extremely disappointed” in the segment’s performance. First-half net sales for the year, at $422.6 million, were lower than the prior year by 8 percent.
“The RX business … experienced weakness due primarily to a shortfall in new product launches, coupled with challenging market dynamics, which is expected to carry forward into the second half of the year,” Roehrhoff said.
Perrigo hopes separating the business from the company will help Perrigo focus on its “leading” consumer business, he said.
The separation is expected to be completed during the second half of 2019. Roehrhoff said more details will be provided during a Sept. 25 conference call.
London-based Barclays is serving as Perrigo’s financial advisor leading the separation process.
The Rx business serves patients and health systems with extended topical medications to treat ailments at more affordable prices.
Its portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids and inhalable products.
Perrigo Company (NYSE: PRGO), a global over-the-counter consumer goods and pharmaceutical company, was founded in Allegan in 1887 as a packager of generic home remedies.
Now headquartered in Dublin, the company makes OTC products and supplies infant formulas and topical medications across a variety of product categories and geographies in North America, Europe and Australia, as well as Israel and China.
The company reported net revenue of $4.9 billion in 2017.