DUBLIN, Dec. 8, 2016 /PRNewswire/ -- Perrigo Company
plc (NYSE: PRGO; TASE) today announced its intention to restructure
the Branded Consumer Healthcare's ("BCH") Omega Pharma Belgium
business (which includes Omega Pharma Belgium NV, Etixx NV and
Biover NV), located in Nazareth, Venecoweg 26 (Belgium) to improve the financial profile and
enhance focus of the business on branded consumer OTC products.
Perrigo's CEO John Hendrickson
stated, "Consistent with our previously announced comprehensive
portfolio review, we are today announcing specific actions to
streamline operations and safeguard the future of our BCH Belgium
business. The action plan for Belgium is directed at enhancing long-term
profitability by focusing our efforts on growing our OTC brand
portfolio. Today's announcement furthers the Perrigo Board of
Directors' and management's commitment to delivering shareholder
value."
To improve the financial profile of the BCH Belgium business,
the Company:
- Signed a definitive agreement with EuroGenerics NV to terminate
their existing distribution agreement to distribute product for
STADA Arzneimittel AG in Belgium
effective December 31, 2016
- Signed a definitive agreement to sell the Etixx brand and its
business effective January 1,
2017
- Allowed for the natural expiration of a distribution agreement
with MEDA AB effective December 2016,
and
- Initiated the consultation process in Belgium to better align the organization to
current business and market dynamics
These combined businesses and products are forecasted to achieve
calendar year 2016 net sales of approximately $155 million dollars with no contribution to
margin.
The employees of Omega Pharma Belgium NV, Etixx NV and Biover NV
have been informed in detail of the business analysis and the
intention to restructure the business operations. Today's
announcement marks the beginning of a consultation period with
employees, as required by Belgian legislation, regarding the
intention to restructure the Omega Pharma Belgian operational
business unit. This restructuring plan is only related to Omega
Pharma Belgium NV, Etixx NV and Biover NV and only activities
related to Omega Pharma Belgium are involved in this
plan.
About Perrigo
Perrigo Company plc, a top five global over-the-counter ("OTC")
consumer goods and pharmaceutical company, offers patients and
customers high quality products at affordable prices. From its
beginnings in 1887 as a packager of generic home remedies, Perrigo,
headquartered in Ireland, has
grown to become the world's largest manufacturer of OTC products
and supplier of infant formulas for the store brand market. The
Company is also a leading provider of generic extended topical
prescription products and receives royalties from Multiple
Sclerosis drug Tysabri®. Perrigo provides Quality Affordable
Healthcare Products® across a wide variety of product categories
and geographies primarily in North
America, Europe, and
Australia, as well as other
markets, including Israel,
China and Latin America. Visit Perrigo online at
(http://www.perrigo.com).
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements." These statements relate to future events or the
Company's future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In some
cases, forward-looking statements can be identified by terminology
such as "may," "will," "could," "would," "should," "expect,"
"plan," "anticipate," "intend," "believe," "estimate," "predict,"
"potential" or the negative of those terms or other comparable
terminology. The Company has based these forward-looking statements
on its current expectations, assumptions, estimates and
projections. While the Company believes these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond the
Company's control, including the timing, amount and cost of share
repurchases, future impairment charges, our ability to achieve our
guidance and the ability to execute and achieve the desired
benefits of announced initiatives. These and other important
factors, including those discussed under "Risk Factors" in the
Company's Form 10-KT for the six-month period ended December 31, 2015, and form 10-Q for the quarter
ended April 2, 2016 as well as the
Company's subsequent filings with the SEC, may cause actual
results, performance or achievements to differ materially from
those expressed or implied by these forward-looking statements. The
forward-looking statements in this press release are made only as
of the date hereof, and unless otherwise required by applicable
securities laws, the Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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SOURCE Perrigo Company plc