The generic (Rx Pharmaceuticals) segment at
Perrigo Company plc
) has been performing well over the last few quarters. The
generic unit has seen quite a few approvals over the past few
months. Segmental sales climbed 25% to $204 million in the first
quarter of fiscal 2014 (ended Sep 28, 2013). Sales of new
products boosted segmental revenues by $15 million. The segment
is expected to continue performing well. For fiscal 2014,
revenues from the segment are expected to grow in the range of
25%-29% over fiscal 2013 levels
The generic unit at Perrigo was further strengthened earlier
in the week with the U.S. Food and Drug Administration (FDA)
granting final approval to Perrigo's abbreviated new drug
application (ANDA) to sell its generic version of
Valeant Pharmaceuticals International, Inc.
) Vanos cream (0.1%). The cream is approved for providing relief
from inflammatory and pruritic manifestations of corticosteroid
responsive dermatoses in patients aged 12 years and above.
With Perrigo being the first to file, the company will enjoy
180 days of marketing exclusivity. The estimated annual sale of
the branded version is approximately $107 million.
The launch of the new product is in line with Perrigo's focus
on adding new products to broaden its product portfolio. Perrigo
expects to launch more than 75 new products in fiscal 2014
contributing approximately $190 million to revenues.
Though impressed by the news on Vanos cream, we believe
investor focus will remain on the performance of the newly formed
Ireland based Perrigo Company plc, formed following the Dec 2013
merger of Allegan, Mich. based Perrigo Company and Elan
Corporation. Following the completion of the $8.6 billion
deal, Perrigo's revenue stream has been boosted as it is now
eligible to receive significant royalties on multiple sclerosis
drug Tysabri from
Biogen Idec Inc.
Perrigo currently carries a Zacks Rank #3 (Hold).
) is an example of a better-ranked stock with a Zacks Rank #2
ADVAXIS INC (ADXS): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
PERRIGO CO PLC (PRGO): Free Stock Analysis
VALEANT PHARMA (VRX): Free Stock Analysis
To read this article on Zacks.com click here.