Perrigo buys Rosemont for £180 million
pharmafile | February 12, 2013 | News story | Manufacturing and Production | Perrigo, Rosemont
UK-based Rosemont Pharmaceuticals has been sold by its private equity owner to Perrigo of the US in a £180 million ($283m) deal.
The sale gives Perrigo a firmer foothold in the UK market and boosts its position in oral liquid pharmaceuticals used by patients who find it difficult to swallow solid oral dosage forms. Rosemont supplies hospitals, wholesalers and retail pharmacies and recorded sales of around £40 million in 2012.
Current owner CBPE Capital originally acquired Rosemont in August 2006 for £93m from Savient, and in the interim has funded significant expansion at the firm, notably a £6 million investment in its Leeds manufacturing facility to boost production capacity.
CBPE also helped the UK firm double its R&D and regulatory affairs personnel to a team of 35, swelling overall numbers at Rosemont to 209 from 156 at the time of the original investment. The company’s portfolio now numbers 94 products – compared to 58 at the time of acquisition – and this growth has led profits to more than double from £9 million in 2006 to £19.2 million last year.
The private equity firm also said Rosemont has started to develop its international business as more and more of its products have been licensed to overseas partners.
John Blythe, chief executive of Rosemont said liquid medicines represent “a market with highly attractive long-term growth fundamentals”, while his counterpart at Perrigo – Joseph Papa – said the deal was “an opportunistic next step given our existing presence in the UK”.
Perrigo has been on an acquisitive path of late, announcing a $160 million deal for animal health company Velcera earlier this month, whilst also taking over generic drugmaker Cobrek Pharma for $45 million in December and Sergeant’s Pet Care for $285 million last October 2012. It also bought diabetes care specialist CanAm for $36 million earlier the same year.
Phil Taylor
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