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Perrigo to Divest Its Prescription Drug Business

Perrigo to Divest Its Prescription Drug Business

Aug 14, 2018PAO-M08-18-NI-015

Company to focus on generics and consumer products.

After conducting a strategic portfolio review, Ireland-based pharmaceutical company Perrigo has decided to spin off its Prescription Pharmaceuticals business. This move will better position the company to expand its consumer business and more effectively leverage its differentiated generic pharmaceutical products. 

Perrigo’s Prescription product portfolio includes affordable topical medications for the treatment of a wide range of diseases, including differentiated and diversified generics in multiple dosage forms, such as creams, foams, mousses, gels, liquids and inhalable products. 

The form of the separation has not yet been decided. According to the company, all options that provide enhanced shareholder value are being considered, including “a possible tax-efficient separation to shareholders, a sale or merger.” 

Noted Chairman of the Board of Directors Rolf Classon: "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. For these reasons, the Board believes the differentiated and diversified Rx business has the potential to realize greater value outside of Perrigo.”

In whatever form it takes, the separation is expected to be completed during the second half of 2019.