Perrigo Makes Its Rx Generics Business Look Right At Home
Board bloc still is pushing to divest the Rx segment, though it achieved 4% volume sales growth and $6m in new product sales in the second quarter. Apparent second-quarter validation isn't enough to persuade CEO John Hendrickson to stay on.
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With US generic drug price erosion running at double digits, 2017 is expected to be a challenging year for the generic drug sector. Manufacturers are looking increasingly to complex generics, injectables and biosimilars as an offset, but it's unclear if wins in those areas will be enough to bridge the growth divide.
The OTC drug, infant and adult nutritionals, Rx generic topicals and API manufacturer's share price has been up since it re-stated is historical revenues from Tysabri multiple sclerosis treatment royalties and reported interim 2017 first-quarter results. Perrigo will "fully concentrate on growing" OTC portfolio.
The firm is reducing its non-production workforce by 750, a decision made after three representatives of disgruntled investor Starboard Value joined its board. Perrigo charts a course of recovery for its struggling international consumer health business, but some analysts are convinced it took a wrong turn with its 2015 investment in European OTC drug and nutritional product businesses and brands.