Perrigo purchases generic Retin-A portfolio from Matawan Pharmaceuticals

Perrigo has agreed a deal to purchase a portfolio of generic dosage forms and strengths of the drug Retin-A from Matawan Pharmaceuticals.

As agreed in December 2015, the deal will see Perrigo take ownership of a range of topical tretinoin-based treatments for acne vulgaris, thus strengthening its offering in this strategically important area.

Perrigo was previously the authorised generic distributor of the product line between 2005 to 2013, before the agreement with Matawan was terminated. Generic and brand sales of Retin-A came to around $290 million (202.02 million pounds) for the year ending in November 2015.

The company expects to generate net sales in excess of $60 million for the acquired products within 12 months of the purchase.

Joseph Papa, chairman and chief executive officer of Perrigo, said: "We are excited to complete this transaction, bringing a high-barrier-to-entry, margin-enhancing product and greater reach to the extended topicals portfolio."

This comes after the firm recently increased its 2016 full-year adjusted earnings per share guidance based on the better-than-expected financial results it delivered in 2015.