Perrigo plans separation of Rx business

Perrigo has announced plans to separate its Prescription Pharmaceuticals (Rx) business following a recent strategic portfolio review.

Expected to be completed during the second half of next year, the separation of the Rx business is order to better enable the company’s unique asset to capitalise on its platform of differentiated generic pharmaceutical products.

It will also allow Perrigo to focus on expanding its consumer business.

Perrigo’s Rx business serves patients and health systems with ‘extended topicals’ medications. Its portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids and inhalable products.

The company’s Board of Directors will consider all value-enhancing options, including a possible tax-efficient separation to shareholders, a sale or merger.

Perrigo Board of Directors chairman Rolf Classon said: "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.

"We intend to begin the preparations for a separation of the Rx business to shareholders as we continue to analyse numerous value-enhancing options including a possible tax-efficient separation to shareholders, a sale or merger."

Perrigo chief executive officer Uwe Roehrhoff said: "Today’s announcement to separate the Rx business enables management to focus on expanding our leading consumer businesses while unlocking potential value for shareholders.

"Committing our energy and capital to the healthcare needs of consumers and our retail and pharmacy partners better positions Perrigo to drive long-term growth. We look forward to providing a comprehensive update on our consumer businesses on a conference call scheduled for September 25, 2018."

Perrigo noted that it has been subject to certain limitations related to separating its businesses since the acquisition of Elan.

The limitations are set to expire in December this year.

Perrigo intends not to disclose further developments on the separation process until it has determined that further disclosure is required or appropriate based on the current facts and circumstances.

The separation of its Rx business is expected to be completed in the second half of 2019. The company has engaged Barclays’ as its lead financial adviser in the separation.

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