NEW YORK (The Deal) -- Ireland's Perrigo (PRGO) said Tuesday it is buying over-the-counter medicines from a recently formed joint venture between the U.K.'s GlaxoSmithKline (GSK) and Novartis AG (NVS) of Switzerland. The products have combined sales of $110 million.
European Commission regulators in January made their approval of the creation of GlaxoSmithKline Consumer Healthcare conditional on the venture's sale of 10 products in certain European and Turkish markets including the NiQuitin aid for quitting smoking, cold and flu products, nasal sprays and drops and the Panodil painkiller from the GlaxoSmithKline portfolio; and Novartis cold sore treatments including the Fenivir and Pencifir brands.
The deal with Perrigo meets the joint venture's disposal obligations, a GlaxoSmithKline spokeswoman said. Perrigo is also buying Novartis' legacy Australian Nicotinell nicotine replacement therapy, and purchasing GlaxoSmithKline's NiQuitin in all global markets bar Australia and the U.S., going beyond the EC divestment order for that brand to be shed in the European Economic Area and Turkey.
Perrigo, which is the target of a hostile $30 billion bid by Mylan (MYL), said the brands it is acquiring would have lifted revenue at its branded consumer health care operation by 8% in 2014 and improved margins. It said the deal will boost 2015 earnings per share immediately
Perrigo Chairman, President and CEOJoseph C. Papa said the purchase builds on the platform it established with its $4.5 billion purchase of Omega Pharma last year.