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Perrigo [NYSE:PRGO], the Dublin, Ireland-based healthcare products maker, is looking to expand in Latin America and elsewhere now that has won a contentious takeover battle with rival Mylan [NYSE:MYL], a company representative said.
Perrigo is particularly interested in expanding in Mexico and Brazil, the representative said. “The company could look at other countries but the focus is Brazil and Mexico for now.”
Perrigo announced 13 November that holders of over 60% of Perrigo’s outstanding shares had refused to tender into Mylan’s USD 26bn take-over offer, as reported.
"M&A is an important part of Perrigo's strategy and, among other interests, the company has an eye on geographic opportunities," the spokesperson said.
In particular, Perrigo is looking at opportunities in the ophthalmics, diabetes care and high value healthcare in Latin America, the person added. It is also targeting geographic expansion in other regions including Europe and Asia, its CEO Joseph Papa previously told this news service.
Perrigo bought the Mexico operations of Patheon Pharmaceuticals for USD 34m in May, gaining the ability to manufacture drugs in Mexico in the form of “soft gel,” according to the company´s website.
Prior to the acquisition, Perrigo had 10 manufacturing facilities in Mexico and about 1,200 employees. Perrigo employs 6,500 people in the US; 1,300 in Israel; 800 in the UK and 420 in the rest of the world, according to official filings.
In Brazil, Perrigo only has a small presence through the operations of Omega, the spokesperson said. “We would like to expand that.” Perrigo acquired Belgium-based Omega Pharma NV in November 2014 for USD 4.5bn including debt, according to its website.
Perrigo seeks to be prudent when making acquisitions to avoid overpaying for a target company, the spokesperson said. The company is likely to be competing with Mylan for assets after Perrigo shareholders rejected the Mylan USD 7.5 per share offer, as reported.
The need to diversify and therefore make acquisitions is more urgent for Mylan as much of its revenue is tied to its allergy treatment EpiPen, said a US-based pharmceuticals analyst. “Perrigo is more diversified.”
EpiPen is a device to self inject epinephrine, also known as adrenaline for the emergency treatment of allergic reactions (anaphylaxis).
Perrigo manufactures OTC products and supplies infant formulas for the store brand market. The company also provides generic prescription products and receives royalties from multiple sclerosis drugs, according to its website.