The spate of acquisitions at
) continued with its purchase of an ophthalmic sterile ointment
and the solution product portfolio from the privately-held Fera
Pharmaceuticals, for approximately $93 million in cash.
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Perrigo has also agreed to make potential contingent payments
amounting to $36 million, some of which pertain to Perrigo
obtaining additional product rights from Fera. Moreover, the
company expects tax benefit worth approximately $20 million due
to the transaction.
The deal, which has strengthened the company's eye-care
portfolio, looks good to us. The acquisition adds nine generic
prescription drugs to its portfolio. Perrigo stated in its press
release that the products added to its portfolio, via the
acquisition, generated net revenues in excess of $30 million
during calendar year 2012. The addition of the generic
prescription drugs will further strengthen the company's Rx
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.
Perrigo carries a Zacks Rank #3 (Hold). Stocks such as
Biogen Idec Inc.
Jazz Pharmaceuticals Public Limited Company
) appear to be more favorably placed. All three companies carry a
Zacks Rank #1 (Strong Buy).