Perrigo jumps on acquisition reports

John Hendrickson

The pharmaceutical company's share price is up 9% on the TASE after reports a UK company will acquire it for $20 billion.

The share price of Perrigo Company (NYSE:PRGO; TASE:PRGO) was up 8.8% in heavy trading on the Tel Aviv Stock Exchange this morning following reports in Streetinsider.com that the US drugmaker is close to being bought by a UK firm for $20 billion. Last night the share price rose 9.2% on the NYSE to $108, its highest price since April, giving a market cap of $15.5 billion.

The share price has fallen 41% over the past 12 months and in the first half of 2015, the pharmaceutical company was the subject of a $29 billion hostile takeover bid from Mylan N.V. (Nasdaq: MYL; TASE: MYL). The then CEO Joseph Papa, who staunchly fought the takeover, left his post in April to become CEO at Valeant Pharmaceuticals International Inc. and his successor John Hendrickson has lowered expectations on the company's results.

Perrigo has been operating in Israel and traded on the TASE since its acquisition of Agis Pharmaceuticals more than 10 years ago. Perrigo has two plants in Israel in Yerucham and Ramat Hovav near Beer Sheva in the Negev with 1,200 employees.

Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

John Hendrickson
John Hendrickson
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