Generic drugmaker Perrigo Co. plc (NYSE: PRGO) is buying the Entocort gastroenterology drug from AstraZeneca plc (LON: AZN) for $380 million.
Entocort, launched 2011, is designed to treat patients who have mild to moderate Crohn’s disease, and generated $89 million in sales through the first nine months of 2015. AstraZeneca says the divestiture is part of the company’s strategy to focus on core areas. The purchase also includes the generic rights to Entocort that are currently held by Par Pharmaceuticals.
Buyer interest in generic drug companies has been picking up in 2015. Cardinal Health Inc. (NYSE: CAH) is adding the Harvard Drug Group from Court Square Capital Partners for $1.15 billion; Mylan NV (Nasdaq; MYL) has made a $29 billion unsolicited bid for Perrgo; Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) agreed to buy Mexican drugmaker Representaciones e Investigaciones Médicas SA and some assets for $2.3 billion.