United States-based Perrigo's board of directors has approved a plan to separate its Prescription Pharmaceuticals (Rx) business following an earlier announced strategic portfolio review, it was reported yesterday.

The board believes a separation of the Rx business, which serves patients and health systems with 'extended topicals' medications, to treat ailments at more affordable prices, will better allow this asset to capitalise on its platform of differentiated generic pharmaceutical products and allow the company to concentrate on expanding its leading consumer business. It will consider all value-enhancing options, including a possible tax-efficient separation to shareholders, a sale or merger, although there can be no assurances as to the form or timing of a transaction or if a transaction will be consummated.

Presently, the separation is likely to be completed during the second half of 2019. The company has chosen Barclays as its financial advisor to lead the separation process.