Perrigo Co. has reached a $48 million agreement to acquire an Australian over-the-counter, store-brand pharmaceuticals supplier.
Perrigo, which bills itself as the world’s largest manufacturer of over-the-counter drugs for the store-brand market, says the purchase of Orion Laboratories Pty Ltd. will add about $30 million annually to its sales, according to a statement from Perrigo.
In addition to selling store-brand pharmaceuticals in Australia and New Zealand, Orion manufactures and distributes drugs to Australian hospitals. Store-brand products refer to those sold under the name of the retailer.
“The acquisition of Orion expands our global presence, complements our existing business and increases value for our shareholders,” said Joseph C. Papa, Perrigo’s chairman and chief executive.
In addition to store-brand products, Perrigo sells generic prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients. Customers include Walgreens, Osco, Kroger and Wal-Mart. Perrigo’s most-widely recognized brand is probably Ibuprofen. Besides the U.S., Perrigo’s primary markets are Mexico, Israel and the United Kingdom.
Last month, the company reported strong second-quarter earnings and upped its full-year guidance. The company more than doubled its profits from continuing operations to $53 million on revenue of $583 million.
In early trading Monday, Perrigo’s stock was up about 2 percent to $50.75.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
