Perrigo (PRGO) Enters Agreement to Acquire U.S. Rights to AstraZeneca's (AZN) Entocort

Perrigo (NYSE: PRGO) that it will acquire Entocort (budesonide) capsules as well as the authorized generic capsules marketed by Par Pharmaceuticals within the U.S. from AstraZeneca plc (NYSE: AZN) for $380 million. Entocort®, a gastroenterology medicine for patients with mild to moderate Crohn's disease, has exhibited consistent revenue streams since the launch of limited generic competition in 2011.

Perrigo Chairman and CEO Joseph C. Papa commented, "We are extremely excited to acquire Entocort® from a world-class organization such as AstraZeneca, which provided patients with access to this important medication. Strategically, Entocort® fits well within our growing Rx portfolio and serves as yet another example of our ability to execute on our 'Base Plus Plus Plus' strategy. We are excited to add this margin-enhancing asset to our already robust Rx portfolio and remain committed to pursuing accretive transactions, such as this one, to continue delivering superior value for our shareholders."

Luke Miels, Executive Vice President, Global Product and Portfolio Strategy, Global Medical Affairs and Corporate Affairs, AstraZeneca, said: "Our agreement with Perrigo completes the global divestment of Entocort®, emphasizing our strategic focus on three main therapy areas and providing further supply chain simplification. We are pleased to be working with Perrigo to ensure patients with Crohn's disease in the U.S. continue to benefit from this important medicine."

The transaction is expected to immediately exceed Perrigo's ROIC threshold and be more than $0.35 accretive to 2016 adjusted EPS after the exclusion of estimates for intangible amortization, transaction costs and integration related expenses. The transaction is expected to close by the end of 2015, subject to customary closing conditions.

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