Sector News

Deal-hungry Perrigo elbows aside competitors for Omega Pharma

October 30, 2014
Life sciences
Deal-hungry Perrigo is looking for more seats at the over-the-counter table, and the drugmaker may soon get its wish. The company is said to be close to sealing the deal for Belgian OTC maker Omega Pharma, inching past big-name competitors like Sanofi, Actavis and Boehringer Ingelheim.
 
As Bloomberg reports, the drugmaker has entered exclusive talks to purchase Omega Pharma for €4 billion ($5 billion), people familiar with the matter told the news outlet. The deal would deliver Perrigo some much-sought-after OTC clout, as the Belgian drugmaker boasts about 2,000 brands, including painkiller Solpadeine. Not to mention the company’s €1.2 billion ($1.6 billion) in sales last year thanks to standout performances in Europe and Russia–a 16% jump on the previous year’s numbers.
 
Perrigo is no stranger to M&A; the company snatched up Elan last July for $8.6 billion, shifting its domicile to Ireland to reap the benefits of a lower tax rate and expanding its footprint abroad.
 
And Perrigo is not the only one looking for more OTC firepower. Novartis and GlaxoSmithKline have agreed to launch a consumer health JV that could catapult the team to the number one spot in the market. Bayer picked up Merck’s consumer unit in May for $14.2 billion, outbidding the likes of Sanofi, Novartis and Reckitt Benckiser. The move is expected to create a business that generated $7.4 billion in combined 2013 sales, a “major milestone” on the company’s path toward global leadership in nonprescription medicines, Bayer CEO Marjin Dekkers said at the time of the deal.
 
Meanwhile, some pharma M&A has stalled, thanks to new U.S. guidelines making it more difficult for companies to move abroad for tax-paying purposes. Earlier this month, Salix Pharmaceuticals dropped its tax inversion deal for Cosmo Pharmaceuticals, and AbbVie called off its pending $55 billion deal for Dublin-based Shire.
 
By Emily Wasserman
 

comments closed

Related News

March 2, 2024

Seeking blockbuster status, UCB eyes 4 new indications for psoriasis med Bimzelx in 2024

Life sciences

After 14 regulatory approvals on three continents last year, UCB is positioned to grow for “a decade-plus,” CEO Jean-Christophe Tellier said in the company’s full-year earnings press release. Meanwhile, eight regulatory reviews are ongoing.

March 2, 2024

Argenx goes again, ramping up unbranded campaign ahead of hoped-for label expansion

Life sciences

Vyvgart Hytrulo, the subcutaneous version of argenx’s FcRn blocker, is already approved in generalized myasthenia gravis (gMG). Supported by data published last year, the biotech has filed for approval in a second setting, chronic inflammatory demyelinating polyneuropathy (CIDP), and is now counting down the weeks until the FDA rules on its submission.

March 2, 2024

EuroAPI appoints new CEO and lays out restructuring plan as manufacturer’s losses mount

Life sciences

Overseeing the four-year plan, dubbed FOCUS-27, will be new chief executive officer Ludwig de Mot—an industry veteran with a track record at “companies undergoing transformation,” EuroAPI said in an earnings release Wednesday. De Mot, who will take up the reins on Friday, joined the company in January as EuroAPI’s chief transformation officer.

How can we help you?

We're easy to reach