) is constantly entering into acquisition and collaboration
agreements to expand its business. In keeping with this strategy,
Perrigo announced two more agreements last week.
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Perrigo announced that it has acquired a basket of value-brand
over-the-counter (OTC) products from Aspen Global Inc. for $51
million in cash. These value-brand OTC products are sold in
Australia and New Zealand and are expected to generate around $20
These products include Aspen's Herron range of analgesics,
vitamins and supplements and are sold through a mass retail
channel. The deal is expected to help Perrigo to expand its
Consumer Healthcare portfolio. The company's Consumer Healthcare
segment recorded revenues of $536 million in the second-quarter
fiscal 2014 (ended Dec 28, 2013).
In a separate announcement Perrigo announced that it has entered
into multiple agreements with
Transition Therapeutics Inc.
). As per these agreements, Transition Therapeutics will be
responsible for all development activities and costs associated
with Perrigo's ELND005.
Transition Therapeutics will advance the clinical development of
ELND005 in indications like Alzheimer's disease, bipolar disorder
and Down syndrome. Perrigo is expected to make a $15 million
investment for around 2.3 million shares of Transition
Therapeutics. Perrigo is eligible to receive royalties and
milestone payments in the event of ELND005 being commercialized.
We note that ELND005 was added to Perrigo's portfolio after it
acquired Elan last year.
Perrigo currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks include
). Both stocks carry a Zacks Rank #2 (Buy).