Perrigo Company has revealed plans to separate its Prescription Pharmaceuticals (Rx) business the better to focus on differentiate generic pharma products.
The company said that this plan, backed by its Board of Directors, will allow it to focus on expanding its consumer business.
The Board is now considering all value-enchanting options which includes 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.
“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,” said Chairman Rolf Classon.
“For these reasons, the Board believes the differentiated and diversified Rx business has the potential to realize greater value outside of Perrigo.
“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.”