Irish drugmaker Perrigo has unveiled its intention to buy a batch of over-the-counter brands from GlaxoSmithKline.
The deal, which as been approved by both sets of directors, falls in line with GSK’s regulatory commitments as per approval of its mega-deal with Novartis to create a consumer health joint venture.
Perrigo will take under its wing GSK’s NiQuitin nicotine replacement therapy (NRT) business, primarily in the European Economic Area (EEA) and Brazil, as well as Novartis’ legacy Australian NRT business, including the Nicotinell brand.
Also, included are several assorted OTC brands including cold/flu treatment Coldrex across the EEA, pain relief drug Panodil and the nasal decongestants Nezeril and Nasin in Sweden, and Novartis’s legacy cold sore management products primarily in the EEA.
“We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30 billion European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio,” said Perrigo chairman, president and chief executive Joseph Papa explaining the move.
The assets will be acquired in an all-cash transaction but the purchase price was not disclosed. The acquisition is expected to be immediately accretive to Perrigo’s calendar 2015 adjusted earnings per share, the firm said.
The move comes while Perrigo continues to defend itself from a takeover attempt by generics giant Mylan, having rejected an offer of $75.00 per share in cash and 2.3 Mylan ordinary shares for each ordinary Perrigo share at the end of April.