) dominant position in the store brand over-the counter (OTC)
drug market was further strengthened when it gained tentative
approval from the US Food and Drug Administration (FDA) to market
its store brand version of
Merck & Co.
) Zegerid OTC. Perrigo intends to launch the drug immediately
after its market formation.
We note that Zegerid OTC (omeprazole and sodium bicarbonate
capsules 20mg/1100mg), which is approved for relieving frequent
heartburn, recorded sales of approximately $42 million for the
last 12 months. The FDA tentative approval of Perrigo's
store brand version of Merck's Zegerid OTC comes close on
the heels of the FDA approval of Perrigo's abbreviated new drug
applications (ANDAs) to market its OTC version of nicotine
polacrilex mini lozenge, 2 mg (mint flavor) and 4 mg (mint
flavor). Perrigo expects to start shipping the product by year
Perrigo's broad line of store brand pharmaceutical products has
the same active ingredients and comparable quality and efficacy
as the national brands. This has helped the company become a
dominant player in the store brand OTC drug market. Perrigo
boasts of partnerships with retailers, pharmacies and mass
merchandisers for whom it manages a wide range of activities
including regulatory approvals, customized branding and packaging
and in-store advertising.
We currently have a Neutral recommendation on Perrigo. The stock
carries a Zacks #2 Rank (short-term Buy rating).
We believe Perrigo has a sustainable and diversified product
portfolio. The company's strong position in the brand OTC
pharmaceutical market and growing generics and active
pharmaceuticals ingredient (API) businesses are expected to drive
growth in the coming quarters. We are also impressed by Perrigo's
MERCK & CO INC (MRK): Free Stock Analysis
PERRIGO COMPANY (PRGO): Free Stock Analysis
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