Perrigo declines Lannett majority
This article was originally published in The Tan Sheet
Executive Summary
Perrigo announced it "has no present intention" to exercise its option to purchase a controlling interest in generic drug maker Lannett. "Unless circumstances change in a way that would increase the value of the Lannett acquisition to Perrigo," the move "would not be in the best long-term interest of our shareholders," CEO David Gibbons said June 10. Lannett said in a same-day statement that Perrigo's decision was motivated by concern over "possible increased acquisition costs resulting from the issuance of four million new shares of common stock in connection with Lannett's long-term distribution contract with Jerome Stevens Pharmaceuticals." Perrigo will continue to monitor developments at Lannett for the remainder of its option period, which ends Aug. 6, and remains committed to its strategy of entering the generic drug market...