Perrigo announced its Board of Directors approved a plan to separate the company's Prescription Pharmaceuticals (Rx) business following the company's previously announced strategic portfolio review. Continuing its focus on shareholder value, the Board believes a separation of the Rx business will better enable this unique asset to capitalize on its platform of differentiated generic pharmaceutical products and allows Perrigo to focus on expanding its leading consumer business. The Board will consider all value-enhancing options, including a possible tax-efficient separation to shareholders, a sale or merger.
The Rx business serves patients and health systems with 'extended topicals' medications, to treat ailments at more affordable prices. The differentiated and diversified portfolio includes topical generic medicines in multiple dosage forms, including creams, foams, mousses, gels, liquids and inhalable products.
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"Perrigo's Board of Directors is committed to shareholder value creation. 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. For these reasons, the Board believes the differentiated and diversified Rx business has the potential to realize greater value outside of Perrigo,” Chairman of the Board of Directors, Rolf Classon said. “After a rigorous analysis of the Rx business, we believe that fully pursuing this separation is in the best interest of Perrigo shareholders. We intend to begin the preparations for a separation of the Rx business to shareholders as we continue to analyze numerous value-enhancing options including a possible tax-efficient separation to shareholders, a sale or merger.
While Perrigo has been subject to certain limitations to efficiently separate its businesses to shareholders since the acquisition of Elan Corporation, those limitations are set to expire in December 2018. The separation is currently expected to be completed during the second half of 2019, which may include a tax-efficient separation to shareholders, a sale or merger, although there can be no assurances as to the form or timing of a transaction or if a transaction will be consummated. Perrigo has engaged Barclays as its financial advisor to lead the separation process. Perrigo does not intend to disclose further developments on this process until it has determined that further disclosure is required or appropriate based on the current facts and circumstances.