Perrigo Shares Gain After Report Drugmaker Is Close to Dealby
StreetInsider reports deal could be worth about $20 billion
Spokeswoman for company declines to comment on news report
Perrigo Co., a maker of generic and over-the-counter drugs, surged Tuesday after a report by StreetInsider.com that it was nearing a deal to be acquired for about $20 billion by a U.K.-based firm.
The shares rose 9.2 percent to $108.13, the biggest one-day gain since April 2015. StreetInsider cited a person familiar with the matter, without identifying them. The outlet didn’t name the company it said could buy Perrigo.
A Perrigo spokeswoman declined to comment.
Perrigo’s shares have fallen 41 percent in the last 12 months, as of Tuesday’s close. The company last year fought off a takeover bid from Mylan NV, arguing that its prospects were better alone than as part of another drugmaker. In May, Joseph Papa left his post as chief executive officer to take the top spot at Valeant Pharmaceuticals International Inc., and his successor cut the company’s forecasts, calling them unrealistic.
Perrigo had sales of $5.35 billion last year, 53 percent of which came from consumer health products such as cough medicine and other over-the-counter treatments. It also makes generic prescription drugs, which accounted for 20 percent of sales.