On September 4, 2019, Perrigo acquired branded rights to Prevacid® from GlaxoSmithKline. Under the terms of the agreement, Perrigo will have the exclusive rights to market, sell and distribute Prevacid®24HR in the United States.
Prevacid®24HR treats frequent heartburn (occurring 2 or more days a week) and is not intended for immediate relief of heartburn.
Perrigo CEO and President Murray S. Kessler commented, “This acquisition of the well-established brand Prevacid®24HR is another example of how tuck-in acquisitions can expand our robust self-care portfolio. This margin accretive asset strengthens our leadership position in a core category and is expected to accelerate brand and category growth. I am confident our team can enhance the value of the Prevacid® brand. Perrigo is in the unique position to leverage its 1) existing infrastructure and manufacturing expertise as we currently promote the active ingredient lansoprazole as a store brand product, 2) expansive U.S. customer network, and 3) innovation pipeline in the gastrointestinal category, which extends beyond current national brand offerings.”
GlaxoSmithKline divested Prevacid24HR as part of its strategy to focus on key categories within the OTC franchise. Perrigo has traditionally been most know for generic and private label products, Prevacid24HR provides Perrigo with another step into the branded product arena.
Crosstree acted as exclusive financial advisor to GlaxoSmithKline plc in its strategic divestment of Prevacid24HR.
This transaction further strengthens Crosstree’s extensive advisory experience with “Big-Pharma”.