ALLEGAN — Shareholders of Perrigo Co. and Tel Aviv-based Agis Industries Ltd. approved a merger agreement between the two companies Tuesday, and the transaction was finalized Thursday.
With its $818 million purchase of Agis, Perrigo inherits a generic platform with a broad topical drug portfolio.
Perrigo began investing in generic prescription research and development about 18 months ago, and now has two generic prescription products on the market and Abbreviated New Drug Applications (ANDAs) pending with the Food and Drug Administration for seven more.
But Agis’ “strong position” in topical generic products and its growing active pharmaceutical ingredients business automatically accelerates Perrigo’s entry into the generic Rx market.
The global generic drug market is estimated between $19 billion and $22 billion, with a compound annual growth rate of 11 percent to 12 percent.
Agis shareholders received 0.8011 Perrigo shares and $14.93 in cash for each common share of Agis stock, which represented $29.87 per Agis share. That totaled about 21.9 million shares of Perrigo stock and $409 million in cash, said Ernest Schenk, manager of investor relations.
The deal gave Agis shareholders 23 percent ownership of the combined company and Perrigo shareholders the remaining 77 percent ownership.
Schenk said Perrigo intends to spend $10 million to $12 million on R&D this year for its generic drug business. As of last December, the combined company had 37 generic prescription products with annual sales of more than $100 million, a combined pipeline of 17 ANDAs pending and 65 products under development.