Drugmaker to split into two firms

Article Excerpt

PERRIGO CO. PLC $73 (New York symbol PRGO, Manufacturing sector; Shares outstanding: 136.8 million; Market cap: $10.0 billion; Dividend yield: 1.0%; Takeover Target Rating: Medium; www.perrigo.com) now plans sell or spin off its topical pharma unit. Topical medications are applied to a particular place on or in the body, usually the skin or mucous membranes. The business provides about one-fifth of Perrigo’s revenue. The remaining firm will continue to make over-the-counter store-branded consumer products for coughs, colds, allergies, etc. That business could also benefit from the U.S. Food and Drug Administration’s plan to relax labelling requirements. That would likely permit some prescription drugs to be sold over the counter, which would open up new opportunities for Perrigo. Whether it decides on a sale or spinoff, Perrigo aims to complete the separation of the topicals businesss by the second half of 2019. Perrigo is a buy. buy…