Generic drugmaker Perrigo to buy Paddock Lab assets for $540 mn
20 Jan 2011
US-based generic drugmaker Perrigo Co today said that it will buy nearly all of the assets of privately held Paddock Laboratories Inc for $540 million in cash to expand its generic portfolio.
Minneapolis-based Paddock is a manufacturer of generic pharmaceutical products and over-the-counter (OTC) and prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and consumer products.
It is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The company's primary markets and locations of manufacturing facilities are the US, Israel, Mexico and the UK.
"This acquisition is an important next step forward in executing on our strategy to expand our specialty portfolio of generic Rx products. It adds incremental scale, as well as excellent development and manufacturing capabilities across a spectrum of niche dosage forms,'' said Perrigo chairman and CEO, Joseph Papa.
''It solidifies Perrigo's leading position in the extended topical space and strengthens our ability to offer new products into the market. And importantly, Paddock has a proven record for quality manufacturing with great customer service," he added.
The transaction is expected to add more than $200 million in annual sales with over 35 products and a strong product pipeline with more than 25 ANDAs pending approval with the US Food and Drug Administration.
Based in Michigan, Perrigo is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription pharmaceuticals, infant formulas, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products.
The 124 year-old company, which had 2009 revenues of $2 billion, is the world's largest store brand manufacturer of OTC pharmaceutical products and infant formulas. Its primary markets and manufacturing plants and logistics operations are located in the US, Israel, Mexico, the UK and Australia.