Perrigo buys Mexican drug manufacturer

Pharmaceutical firm Perrigo Company (Nasdaq:PRGO; TASE:PRGO) has bought privately-held Mexican firm Laboratorios Diba, S.A for about $25 million.

Laboratorios Diba is a store brand manufacturer of over-the-counter (OTC) and prescription pharmaceuticals, including antibiotics, hormonals, and opthalmics. The company is based in Guadalajara, Mexico. The acquisition is expected to add nearly $15 million to Perrigo's annual sales.

Perrigo chairman and CEO Joseph C. Papa said, "Perrigo has been in the Mexican market for more than 65 years and is the leading supplier of prescription and OTC store brand products there. The acquisition of Laboratorios Diba will enable us to market an additional 150 formulas and 50 trademarks into the rapidly growing Mexican store brand market, saving consumers money on their healthcare options. This further exemplifies Perrigo's commitment to meeting the growing need for quality, affordable healthcare around the world."

Perrigo is the world's largest manufacturer of over the counter pharmaceutical products for the store brand market. It has manufacturing facilities in the US, Israel, Mexico, and the UK.

In late 2004, Perrigo announced its merger with TASE-listed Agis, which was completed in March 2005. The cash and share deal was worth about $818 million. Agis chairman Moshe (Mori) Arkin became a vice president at Perrigo until he retired in 2006, and he remains on the board of directors.

Shares in Perrigo fell $0.24 on Nasdaq on Friday to close at $37.27. On the Tel Aviv Stock Exchange (TASE), its shares are up nearly 2% to NIS 129.30. Its shares have fallen 8% on the TASE in 2008.

Published by Globes [online], Israel business news - www.globes-online.com - on October 6, 2008