Mylan deal target Perrigo bags GSK, Novartis consumer meds

Lately, Perrigo's ($PRGO) shown it would rather be the acquirer than the acquired--and it continued down that path Tuesday.

The Dublin drugmaker--lately the apple of suitor Mylan's ($MYL) eye--inked an all-cash pact to pick up a portfolio of older OTC products from market leader GlaxoSmithKline ($GSK) for an undisclosed sum. The consumer health treatments brought in an combined $110 million last year, and Perrigo expects them to immediately start padding its 2015 earnings after the deal wraps. It's expecting to close during the third quarter.

At that point, Perrigo will be able to count NiQuitin nicotine replacement therapy, Coldrex cold and flu treatment, and former Novartis ($NVS) cold sore management therapies, among others, as part of its OTC lineup. They're products that GlaxoSmithKline Consumer Healthcare--a newly formed, GSK-controlled joint venture between the British pharma giant and Novartis--had committed to divesting in order to snag regulatory clearance for their March union.

Perrigo CEO Joseph Papa

For Perrigo, the move follows up on its recently completed buyout of Belgium's Omega Pharma, a deal that Perrigo expects to help it expand in Europe and beyond. It's also part of the company's "Base Plus Plus Plus strategy," which involves making selective buys to expand its base business, Perrigo CEO Joseph Papa noted.

If generics giant Mylan had its way, though, Perrigo would be selling rather than buying. Looking to thwart a takeover try from knockoffs rival Teva ($TEVA), Mylan has recently made multiple offers for Perrigo and touted the benefits of a tie-up to shareholders, analysts and the media.

But as far as Perrigo's concerned, those offers have been too low, "substantially" undervaluing the company. While Papa told Bloomberg last month that deal talks could happen if the price is right, right now, "we're pretty far apart," he said.

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Special Report: Top 11 Fastest-Growing Generics Companies - Perrigo | Pharma's top 10 M&A deals of 2014 - GlaxoSmithKline Oncology/Novartis Vaccines (excluding flu)