More consolidation in generic drugs
As the generic drug industry gets more prominent as key drug patents expire, there's more consolidation in that market. That was signaled recently by the announcement of Perrigo Corp., the US company that is the largest maker of store branded over-the-counter medicines, that it would acquire Israel's Agis Industries, a major maker of prescription generic medicines. The two companies combines have over $1.3 billion in revenue.
Perrigo's portfolio includes such items as cold remedies, cough syrups, antacids, and dietary supplements, such as herbal remedies and vitamins. These are sold by chain stores and other retailers alongside national brands, but at a major discount. The names and packaging often are parallel to the brand name products. The company sells over 1,200 products. It has branches in the UK and Mexico. Among the company's clients are Wal-Mart, CVS, Target, Kmart, and Kroger.
Agis makes not only generics, it also makes the active ingredients used in over-the-counter medicines, supplying tehm to other pharmaceutical firms. It also sells over-the-counter topical ointments and creams, something not in Perrigo's current lineup. The company has plants in Germany and the US.
Perrigo has decided to move out of the flat over-the-counter market into the growing (10% a year) generics market. Other recent generic drug acquisitions include Swiss Novartis's acquisition of Canada's Sabex as well as that of Denmark's Durascan.
Also in the US, Mylan Laboratories bought out US generic manufacturer King Pharmaceuticals Israeli firm Teva, the #1 generic drug manufacturer acquired US-based Sicor a year ago.
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