Pharmaceuticals and self-care products manufacturer Perrigo Company plc is preparing to sell its prescription pharmaceuticals business (Rx) to Altaris Capital Partners for $1.55 billion. The investment firm announced Monday that both companies have entered into an agreement on the transaction.
“I am thrilled that we are working with Altaris to establish Perrigo’s Rx business as an independent company,” Sharon Kochan, the president of the business, said in a release. “This is a very important and exciting milestone that will enable us to focus on executing our ambitious plans and growth strategy. Altaris’ healthcare specialization and experience with similar business separations will bring unique, fresh and relevant perspectives as we embark on the next phase of our journey.”
Focusing on extended topical dosage forms like gels, nasal sprays, and creams, Rx has a portfolio of more than 200 product families and 800 SKUs. The business currently operates six locations in the US and Israel and employs over 1,300 workers.
“Given our experience in the pharmaceutical sector and track record of corporate carve-out transactions, we believe we are well-positioned to support the Rx business as it becomes a standalone company focused on its mission of developing and marketing affordable pharmaceutical products,” said Garikai Nyaruwata, managing director of Altaris, in a statement.
The global topical drug delivery market is projected to increase in value from $95.2 billion in 2020 to $129.8 billion by 2025, according to a recent forecast by business intelligence firm Markets and Markets. Researchers predict the market will grow at a CAGR of 6.4% during the period.