Talk about peer pressure. First, a couple of U.S. drugmakers pull off trans-Atlantic deals that shift their official HQs and lower their tax rates. Next, some bigger names go for the same tax-inversion strategy. Now, investors want to know why every drugmaker isn't jumping in.
OTC generics maker Perrigo could be the next tax-advantaged company in line for a buyout. And while Perrigo hasn't confirmed any M&A plans, speculation has been enough to send shares soaring.
Over-the-counter drug specialist Perrigo has been on an expansion roll the last two years, culminating with its $8.6 billion buyout last summer of Ireland-based drug company Elan. Its latest earnings reflect that growth, with sales up 11% and adjusted net income jumping 45%.
The FDA has asked drugmakers to recall several products with dosing systems or potency variations that could lead to dangerous overdoses.
According to a new report from consultant PwC, there was a decline in the two Vs--volume and value--after some big deals in the first quarter pushed both of those up.
There's been a lot of talk about a dearth of innovation in the pharma business. But some drugmakers don't lack creativity. In fact, a few of them actually made Forbes' latest list of 100 most innovative companies on the globe.
Perrigo has snatched up Elan for $8.6 billion in a cash-and-stock deal. Call it a case of opposites attracting: U.S.-based Perrigo specializes in cheap, store-brand generics, while Elan is an Irish biotech best know for its longstanding--and now dissolved--partnership with Biogen Idec on the multiple sclerosis drug Tysabri.
The chase for Elan appears to be over. Perrigo, a U.S. maker of over-the-counter and generic drugs, has emerged with a winning bid to acquire the Irish biotech outfit for $8.6 billion in cash and stock.
Perrigo has further solidified its position in topical dermatology drugs, one of the areas in which prices have been escalating of late.
It's the endgame for 2012 election candidates--and for supporters that have shelled out cash to support their bids for votes. As usual, the pharma business is right there in the fray, with political action committees and employees donating hundreds of thousands, if not millions.