) soared to a 52-week high of $123.95 during the second half of
the trading session on Jul 5, 2013 buoyed by a series of positive
developments. The closing price of the company on that day was
$123.77, representing an impressive year-to-date return of 16.2%.
BIOGEN IDEC INC (BIIB): Free Stock Analysis
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
PERRIGO COMPANY (PRGO): Free Stock Analysis
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Moreover, Perrigo has delivered positive earnings surprises in
three of the last four quarters with an average beat of 1.61%.
The long-term expected earnings growth rate for this stock is
Acquisition of Fera's Eye-care Portfolio- A Smart
Last month, Perrigo purchased the ophthalmic sterile ointment and
the solution product portfolio from the privately-held Fera
Pharmaceuticals, for approximately $93 million in cash.
The deal, which has strengthened the company's eye-care
portfolio, looks good to us. The acquisition has added nine
generic prescription drugs to its portfolio. The addition of the
generic prescription drugs has further strengthened the company's
Rx Pharmaceuticals segment.
Perrigo expects the acquisition to boost its adjusted earnings
per share in fiscal 2014 by 12 cents. The company's fiscal year
ends on the last Saturday of Jun every year.
Perrigo has lately been quite active on the acquisition front. On
Apr 1, 2013, the company announced that it has completed the
acquisition of companion animal health company, Velcera, Inc. for
approximately $160 million in cash.
In Feb 2013, the company acquired UK-based Rosemont
Pharmaceuticals Ltd. By acquiring Rosemont Pharma, Perrigo has
strengthened its position in the UK oral liquid formulations
In Dec 2012, Perrigo acquired privately held Cobrek
Pharmaceuticals, Inc. for approximately $45 million in cash. In
Jan 2012, the company inked a deal to acquire the assets of
Georgia-based private company CanAm Care, thereby expanding its
presence in the diabetes care market. In Jul 2011, it acquired
Paddock Labs to expand its generic Rx business. We are impressed
by Perrigo's growth-by-acquisition strategy.
We are also impressed by Perrigo's strong pipeline. Perrigo has a
strong pipeline and expects to launch more than 60 new products
in fiscal 2013 contributing approximately $130 million to
Other Stocks to Consider
Perrigo, which develops, manufactures and distributes OTC and
generic prescription pharmaceuticals, carries a Zacks Rank #3
(Hold) in the short run. Stocks such as
) appear to be more attractive in the generic space with a Zacks
Rank #2 (Buy). Meanwhile, stocks such as
Biogen Idec Inc.
Jazz Pharmaceuticals Public Limited Company
(JAZZ) appear to be more favorably placed. Both companies carry a
Zacks Rank #1 (Strong Buy) and are worth considering.