Perrigo has entered an agreement to acquire a portfolio of GlaxoSmithKline’s OTC products in an undisclosed, all-cash transaction. The transaction is in connection with GSK’s commitments to the European Commission and other regulators to divest these businesses in the context of forming a consumer health joint venture between GSK and Novartis.
 
The portfolio includes well-established European brands in the areas of nicotine replacement therapy, cold and flu, and cold sore management. Sales of the acquired brands in 2014 were approximately $110 million.
 
Perrigo gains GSK’s NiQuitin nicotine replacement therapy (NRT) business, primarily in Europe and Brazil, and Novartis’s legacy Australian NRT business, including the Nicotinell brand; OTC brands including Coldrex (cold and flu treatment) across Europe, and Panodil (pain relief), Nezeril (nasal decongestant), and Nasin (nasal decongestant) in Sweden; and Novartis’ legacy cold sore management products primarily in Europe.
 
Perrigo chairman, president and chief executive officer Joseph C. 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 $30 billion 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.