Perrigo to invest $40m. to expand Negev plants

Company boosted workforce by 40% over 3 years.

By GALI WEINREB/GLOBES
June 21, 2012 23:34
2 minute read.
Isreli currency.

Money cash Shekels currency 521. (photo credit: Reuters)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

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 Thursday.

Hendrickson said that Perrigo’s Israeli operations included both production and R&D, and were part of its core business.

Be the first to know - Join our Facebook page.


He cited 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.

in 2011, and they are the company’s largest development and production centers outside the US.

JPOST VIDEOS THAT MIGHT INTEREST YOU:


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 acquisitions.

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 said.

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.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS