Perrigo acquires Omega for $4.5 billion
pharmafile | November 7, 2014 | News story | Manufacturing and Production, Sales and Marketing | Actavis, Boehringer Ingelheim, Boehringer Ingelheim., Elan, Perrigo, Sanofi, omega
In a deal worth $4.5 billion Perrigo has announced the acquisition of over-the-counter (OTC) drugmaker Omega.
This places the Irish company – that will also be taking on Omega’s $1.3 billion worth of debt – among the five largest providers of OTC products, and follows its purchase just last year of fellow Irish drugs firm Elan Corporation for around $8.6 billion.
“The combination of these two great companies accelerates Perrigo’s international growth strategy, substantially diversifies our business streams and establishes a durable leadership position in the European OTC marketplace,” says Perrigo chairman, president and chief executive Joseph Papa.
A number of big pharma firms had also expressed interest in the potential purchase of Omega, and among those included names such as Sanofi, Actavis and Boehringer Ingelheim.
Last year Omega generated sales of more than $1.6 billion across its OTC product range which includes cough and cold, skincare, pain relief and weight management treatments. Perrigo reported sales of $4.6 billion in the 12 months ending 28 June.
The Irish firm also announced a record Q1 this year with net sales of $952 million, up 2% during the same quarter last year.
Papa continues: “Our strong financial performance and operational structure have enabled the continued growth and globalization of our business model with Ireland as our gateway for this expansion. Together, our combined company will have an even larger product portfolio, broader geographic reach, and enhanced scale.”
Past acquisitions and change of HQ
Just over a year ago the Irish firm ended a bitter takeover battle when it snapped up Elan Corp after the company rejected three lower bids from US investment firm Royalty.
This acquisition actually led to Perrigo, formally of the US, to form New Perrigo and base its HQ in Ireland. Since then, the firm now enjoys a 12.5% corporation tax rate which is much lower than the US rate of 35 per cent.
2013 also saw Perrigo take charge of UK based firm Rosemont Pharmaceuticals after it was sold for $283 million boosting the Irish company’s foothold in the UK market place.
Past acquisitions at Perrigo also include a $160 million deal with animal health company Velcera, the takeover of generic drugmaker Cobrek Pharma and a $36 million agreement with diabetes care specialist CanAm.
Tom Robinson
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