Perrigo Company plc (NYSE:PRGO; TASE:PRGO) is continuing its mergers and acquisitions strategy. Ten weeks after completing its largest ever acquisition of Ireland's Elan Corporation for $8.6 billion, on Friday it announced the acquisition of a basket of value-brand OTC products sold in Australia and New Zealand from Aspen Global Inc. for $51 million in cash. The products are primarily sold through the mass retail channel and include the Herron range of analgesics, vitamins and supplements. This basket of products is expected to generate at least $20 million in annual revenue.
In a separate announcement, Perrigo said that it has signed a series of agreements with its partner, Canada's Transition Therapeutics Inc. (Nasdaq: TTHI), to progress the clinical development of ELND005 (Scyllo-inositol) in a number of important indications including Alzheimer's disease, bipolar disorder, and Down Syndrome. Transition Therapeutics will acquire all of the Perrigo Irish subsidiary which is developing the drug. Perrigo will be eligible for up to $40 million, subject to the drug's development milestones, as well 6.5% royalties in future sales.
Perrigo will acquire 7% of Transition Therapeutics at $6.65 per share for $15 million. Transition Therapeutics' share price rose 7.6% on Friday to $7.20, giving a market cap of $213 million.
Perrigo recouped most of its drop in after-hours trading on Nasdaq on Friday to $166.03, giving a market cap of $22 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2014
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