Perrigo Company (NYSE:PRGO; TASE:PRGO) president, chairman and CEO Joseph Papa is coming to Israel to meet investors as part of his campaign against the hostile takeover bid for the pharmaceuticals company, which is listed in Tel Aviv, by Mylan, "Globes" has learned. In the past few months, since Mylan announced its intention of acquiring Perrigo and the Perrigo board announced its opposition to the move, senior managers of both companies have met investors and analysts, including meetings in Israel with the CFOs of both companies, although for Papa this will be his first meeting with investors in Israel concerning the Mylan bid.
Last week, Perrigo released its financial statements and announced a streamlining plan designed to achieve greater value for its shareholders than the Mylan deal would achieve. The plan includes layoffs of 800 employees. It is believed that the effect on the company's activity in Israel will be fairly small. Perrigo employs about 1,200 people in Israel.
Other features of the Perrigo plan are consolidation of its supply chain in Ireland, abolition of duplications in its organizational structure, the sale of the vitamins and food supplements business in the US, and a $2 billion share buyback program.
As part of its effort to persuade investors to vote against the Mylan offer, Perrigo presented to investors its "Base Plus Plus Plus" strategy: Perrigo's existing businesses, plus a switch of products from prescription to non-prescription status, acquisitions, and upside from MS treatment Tysabri, on the sales of which Perrigo receives royalties. Last week, however, it was reported that a trial for Tysabri for additional indications failed.
Papa has run Perrigo for the past nine years, and led it to substantial growth both in revenue and profit, among other things through a series of acquisitions. During that period, the company's market cap has risen from $1.6 billion to its present level of some $22 billion. Mylan's cash and shares bid values Perrigo at about $24.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2015
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