Perrigo Company plc ("Perrigo") (NYSE: PRGO; TASE) announced today that it will acquire a portfolio of generic dosage forms and strengths of Retin-A® (tretinoin) from Matawan Pharmaceuticals, LLC. Perrigo was the authorized generic distributor of these products from 2005 to 2013 before the agreement was terminated. Generic and brand sales of Retin-A®, which is indicated for the topical treatment of acne vulgaris, were approximately $287 million for the 12-months ending October 2015. Additional financial terms were not disclosed.
Perrigo Chairman and CEO Joseph C. Papa commented, "We are excited to reacquire this high-barrier to entry product into our unique Rx portfolio. This serves as yet another example of our ability to execute on our 'Base Plus Plus Plus' strategy and we believe this margin-enhancing asset superbly complements our already robust Rx portfolio. We remain committed to continue delivering superior value for our shareholders."
The transaction is expected to immediately exceed Perrigo's ROIC threshold and add more than $0.20 in adjusted EPS within the first 12 months post-close after the exclusion of estimates for intangible amortization, transaction costs and integration related expenses. The transaction is expected to close in the first quarter of 2016, subject to customary closing conditions.
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