Perrigo, a global provider of healthcare products, has signed a definitive merger agreement with Cobrek Pharmaceuticals, a Chicago-based, privately held drug development company, and has acquired the company for approximately $45 million on a cash free and debt free basis.

In May 2008, Perrigo acquired an 18.5% minority stake in Cobrek in conjunction with entering into a product development collaborative partnership agreement with the company focused on foam dosage form generic pharmaceutical products. To date, the partnership has successfully yielded two commercialized foam-based products and an additional two FDA approved foam-based products awaiting date certain launches in Perrigo's fiscal year 2013.

Cobrek primarily derives its earnings stream from profit shares on products partnered with Perrigo, who is responsible for all commercial activities under the existing collaboration agreement. As part of the transaction, Cobrek will forgo any profit share payments earned during Perrigo's fiscal second quarter 2013.

"We continue to market the only generic foam products in the U.S. and expect to launch two additional products—generic versions of Luxiq (betamethasone valerate) Foam and Olux-ER (clobetasol propionate) Foam 0.05%—during this fiscal year, which is a testament to the challenges of this dosage form and success of our partnership with Cobrek,” said Joseph C. Papa, chairman, president and CEO of Perrigo. “The partnership also boasts an additional Abbreviated New Drug Application (ANDA) on file for a promising topical generic product. This acquisition allows us to capture the full economics going forward on our portfolio of prescription foams as well as maintain control over future development activities in this important category of extended topical products. Acquiring the remaining stake of Cobrek not already owned is the logical next step in this relationship and will allow us to continue to bring quality, affordable healthcare to our consumers and customers."