Money cash Shekels currency 521.
(photo credit: Reuters)
Perrigo Company will invest $40 million over three years to expand its plants in
Yeruham and Ramat Hovav in the Negev. Perrigo EVP global operations and supply
chain John Hendrickson made the announcement at a press conference in Yeruham
Hendrickson said that Perrigo’s Israeli operations included
both production and R&D, and were part of its core business.
the diligence, commitment and education of the plant’s employees, and added that
government incentives facilitated the company’s decision to keep hundreds of
employees in the Negev.
Perrigo has boosted the workforce at its two
Negev plants by 40 percent over the past three years to 900 employees, 40% of
whom have university degrees. The company has invested $280m. in the plants over
the years, as well as $30m. in R&D in Israel.
Perrigo posted $3
billion (NIS 11.4b.) revenue in 2011.
Sales by its Israeli operations
totaled NIS 1.6b. in 2011, up 20% over 2010, and the company expects
double-digit growth in 2012. Exports from the two plants exceeded $1b.
2011, and they are the company’s largest development and production centers
outside the US.
The Yeruham plant develops and produces a range of
generic drugs, especially complex dermatology products, the original business of
Agis Pharmaceuticals, which Perrigo acquired. The Ramat Hovav plant is a leading
global developer and producer of active pharmaceutical ingredients (APIs) for
the generic drug industry, with more than 300 customers.
Perrigo is 125
years old. It was a private company until it acquired Agis, which was traded on
the TASE, for $900m. in 2005. Perrigo took the opportunity to list on Nasdaq,
and become duallisted.
The company achieved 10% organic growth in the six
years following the Agis acquisition, and 47% growth including
Hendrickson said that Perrigo was very optimistic about its
growth in 2012.
“Our growth opportunities are excellent in the US, which
accounts for 70% of our business, as well as in other countries. We’re expanding
in the US and Europe, especially in pharmaceuticals, and in the functional food
sector elsewhere in the world. The economic crises in the US and Europe actually
help us, because they push consumers to use generic treatments,” he
As for biosimilars, Hendrickson said, “At the moment, we’re looking
with curiosity from the outside, and we have not yet made any substantial
investment in the field. Although we won’t be pioneers in the field, when it
develops, we’ll probably enter it quickly.”
Perrigo’s share price rose
0.8% by mid-afternoon Thursday on the TASE today to NIS 445.60, after rising
0.7% on Nasdaq Wednesday to $115.50, giving a market cap of $10.8b.