Perrigo said today it will acquire Entocort® (budesonide) capsules and the authorized generic capsules marketed by Par Pharmaceuticals within the U.S. from AstraZeneca for $380 million.
Perrigo said Entocort®, a gastroenterology medicine for patients with mild to moderate Crohn's disease, has exhibited “consistent” revenue streams since the launch of limited generic competition in 2011. Perrigo’s announcement did not quantify that revenue.
“Strategically, Entocort fits well within our growing Rx portfolio and serves as yet another example of our ability to execute on our 'Base Plus Plus Plus' strategy,” Perrigo chairman and CEO Joseph C. Papa said in a statement.
Base plus, plus, plus refers to Perrigo’s “base” of consumer-facing businesses, consumer health and branded consumer health—all of which account for about 75% of the company’s total revenues—as well as opportunities presented by status changes in drugs from prescription to over-the-counter; inorganic growth through acquisitions; and additional royalty revenues from Tysabri through new indications.
“We are excited to add this margin-enhancing asset to our already robust Rx portfolio, and remain committed to pursuing accretive transactions, such as this one, to continue delivering superior value for our shareholders,” Papa stated.
Added Luke Miels, AstraZeneca evp, global product and portfolio strategy, global medical affairs and corporate affairs: “Our agreement with Perrigo completes the global divestment of Entocort, emphasizing our strategic focus on three main therapy areas and providing further supply chain simplification.”
The deal is expected to immediately exceed Perrigo's return-on-invested-capital threshold and add to 2016 adjusted EPS by more than 35 cents per share after the exclusion of estimates for intangible amortization, transaction costs and integration related expenses.
The transaction is expected to close by the end of 2015, subject to customary closing conditions, Perrigo said.
