Deal For TheraTears Emphasizes Prestige Is A Consumer Health Business, Akorn Isn't
Both firms announce agreement for Prestige to pay Akorn $230m cash for TheraTear, Diabetic Tussin and Zostrix OTCs and MagOx and Multi-betic supplements. Akorn says the agreement is "to sell its Consumer Health business,” even though it retains two consumer brands.
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Akorn has announced a $230m all-cash deal to divest its consumer healthcare business to Prestige Consumer Healthcare. The transaction will allow Akorn – which recently went through bankruptcy proceedings – to invest in optimizing its prescription business.
Less travel, closed schools and a slower cold/cough season during the pandemic required Prestige Consumer to invest strategically across its OTC healthcare portfolio in fiscal 2021. Dramamine motion sickness and Nix head lice treatments got less attention, while Monistat, Compound W and Clear Eyes received more.
BC and Goody's OTC acetaminophen formulations perhaps are the firm's most known consumer health brands but they account for 12% of its revenues while its Monistat and Summer's Eve brands drove 27% of its sales in its latest quarter. The feminine hygiene brands' contribution, says a Jefferies analyst , will only grow with the firm selling its household care brands to focus entirely on the consumer health market.