Yahoo Finance Perrigo's (PRGO) OTC Version of Nexium Secures FDA Approval
Perrigo Company plc PRGO announced that the FDA has granted a final approval to the over-the-counter (OTC) version of AstraZeneca’s AZN Nexium 24HR (esomeprazole magnesium) capsules for treating patients with frequent heartburn.
Perrigo’s shares have significantly underperformed the industry so far this year. The stock has lost 6% versus the broader industry’s 17.9% rally.
Meanwhile, Perrigo also said that it has entered into a settlement agreement with AstraZeneca regarding the ongoing patent litigation between the companies. Per the settlement, Perrigo can launch the generic capsules in late September.
Importantly, Nexium recorded retail sales of $300 million, for the last 12 months.
We remind investors that Perrigo has expanded its product offerings in the OTC market, both in Europe and U.S. through a slew of targeted acquisitions. The Mar 2015 acquisition of Omega Pharma and the purchase of a portfolio of well-established OTC brands (Niquitin and Coldrex) from GlaxoSmithKline plc GSK in Aug 2015 expanded Perrigo’s market share in the European OTC market.
Meanwhile, in Aug 2015, Perrigo also acquired ScarAway, a leading U.S. OTC scar management brand portfolio which provided Perrigo with an entry into the branded OTC business in the United StatesWith growth in the OTC market on track as consumer demographics and dynamics drive the use of OTC products, Perrigo has identified potential Rx-to-OTC switches worth multibillion dollars. Upon Nexium’s launch, it is expected to be a key new store-brand Rx-to-OTC switch product.
Perrigo Company Price
Perrigo Company Price | Perrigo Company Quote
Zacks Rank & Key Picks
Perrigo currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the pharma sector is Aduro Biotech, Inc. ADRO, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aduro Biotech’s loss per share estimates narrowed from $1.46 to $1.32 for 2017 and from $1.41 to $1.24 over the last 30 days. The company delivered positive surprises in two of the trailing four quarters with an average beat of 2.53%.
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