Perrigo to buy OTC drugs portfolio of GlaxoSmithKline

Perrigo will acquire rights to the nicotine replacement therapies of both GSK and Novartis, NiQuitin and Nicotinell.

Novartis’s cold sore management products in the EEA and cold and flu, and pain relief products in Sweden are also part of the deal.

The cold sore management products of Novartis in the EEA are marketed under the brands Vectavir, Pencivir, Fenivir, Fenlips and Vectatone.

GSK is selling the brands to meet the European Commission’s condition to divest the products for obtaining approval of its consumer health joint venture with Novartis.

The total net sales of the acquired brands in 2014 were approximately $110m. Perrigo expects the deal to increase its Branded Consumer Healthcare’s net sales by approximately 8%.

Perrigo chairman, president and CEO Joseph Papa said: "This acquisition demonstrates Perrigo’s ability to execute on our ‘Base Plus Plus Plus’ strategy, in which we make selective, accretive transactions to expand our durable base business.

"We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30bn European OTC market opportunity with several well-established, complementary brands that bolster our OTC product portfolio.

"We are committed to making investments in these brands to grow their market positions in key geographies, by following Omega Pharma’s proven approach to brand building.

The acquisition has been unanimously approved by the boards of directors of both the companies.

The transaction is expected to be completed in the third quarter, pending approval from the European Commission, the Australian Competition and Consumer Commission, and Brazil’s Council for Economic Defense.

Perrigo has recently acquired European OTC dermatological product Vitasil, and Mexican operations of US-based Patheon.

Image: After acquisition Perrigo will have rights to NRT business of both GSK and Novartis. Photo: courtesy of stockimages / FreeDigitalPhotos.net.