Allegan pharmaceutical manufacturer Perrigo (Nasdaq: PRGO) has announced it has signed a definitive merger agreement and completed full acquisition of Cobrek Pharmaceuticals Inc., a privately-held, Chicago based drug development company, for approximately $45 million on a cash free and debt-free basis.

In May 2008, Perrigo co-founded Cobrek with Pentech Pharmaceuticals of Rolling Meadows, Ill., to develop and sell medical foams. Up to now, Cobrek has been part of Pentech, with Perrigo owning an 18.5 percent minority share.

To date, the partnership has produced two commercialized foam-based products and an additional two FDA approved foam-based products that will be launched in Perrigo’s fiscal year 2013.

Cobrek primarily derives its earnings stream from profit shares on products partnered with Perrigo, which is responsible for all commercial activities under the existing collaboration agreement. As part of the transaction, Cobrek will forgo any profit share payments earned during Perrigo’s fiscal second quarter 2013.

Perrigo chairman, president/CEO Joseph C. Papa said Perrigo markets “the only generic foam products in the U.S.” and expects to launch two additional products — generic versions of Luxiq Foam and Olux-E Foam, clobetasol propionate 0.05 percent, during this fiscal year, “which is a testament to the challenges of this dosage form and success of our partnership with Cobrek.”

Luxiq foam is a topical corticosteroid used to reduce itching, redness and swelling associated with skin conditions of the scalp. Olux-E Foam is for the treatment of psoriasis.

Papa said the partnership “also boasts an additional Abbreviated New Drug Application (ANDA) on file for a promising topical generic product. This acquisition allows us to capture the full economics going forward on our portfolio of prescription foams, as well as maintain control over future development activities in this important category of extended topical products.

"Acquiring the remaining stake of Cobrek not already owned is the logical next step in this relationship and will allow us to continue to bring quality, affordable health care to our consumers and customers,” he said.

Perrigo, in business since 1887, markets itself as the world’s largest manufacturer of over-the-counter pharmaceutical products for the store brand market.