Esteve to acquire Perrigo’s HRA pharma rare diseases business

Family-controlled Spanish pharma company Esteve has signed a binding offer with USA-based Perrigo Company (NYSE: PRGO) to acquire the latter’s HRA Pharma Rare Diseases, a specialist in rare and ultra-rare diseases.

As a result, Esteve will increase its portfolio in the rare and severe diseases therapeutic area, adding to its current portfolio three new medicines that address Cushing's syndrome and adrenocortical carcinoma: metopirone, lysodren, and ketoconazole HRA.

The total purchase consideration is worth up to 275 million euros ($294 million), consisting of 190 million euros in cash upfront and up to 85 million euros in potential earnouts; based on 2023 adjusted earnings before interest, depreciation and amortization (EBITDA) of ~20 million euros. The total consideration would be accretive to Perrigo's current enterprise value-to-EBITDA multiple, the US firm noted