Cough and cold sales boost Perrigo 2Q profit

Perrigo lifts profit forecast after cold and flu revenue and generic revenue top estimates

• On 12:05 pm EST, Monday November 2, 2009

ALLEGAN, Mich. (AP) -- Drug and nutritional products maker Perrigo Co. said Monday its profit climbed 62 percent in its fiscal first quarter due to strong sales of cough, cold and flu products and raised its forecast for the full year.

Perrigo's quarterly profit and revenue beat Wall Street expectations, and its shares rose to a 52-week high.

Perrigo reported improved sales of generic products sold under store brand names, and its revenue was also boosted by some recent acquisitions.

In the quarter ended Sept. 26, Perrigo said it earned $61.3 million, or 66 cents per share, compared with $38 million, or 40 cents per share, a year earlier.

Revenue grew 16 percent to $528 million from $455.5 million. According to Thomson Reuters, analysts were expecting a profit of 50 cents per share and $494.8 million in revenue.

In midday trading, the stock rose $1.63, or 4.4 percent, to $38.82. Earlier it peaked at a 52-week high of $39.

Perrigo said consumer health care revenue rose 19 percent to $437 million. The company gained $36 million in new revenue after buying JB Laboratories, Unico and Diba over the last year. It also posted improved sales of gastrointestinal drugs, anti-smoking products, and drugs for coughs, colds and pain.

Store brand product revenue rose 13 percent, and over-the-counter revenue improved by 3 percent.

Prescription drug revenue rose 42 percent to $47 million. However revenue from sales of active ingredients slipped to $30 million from $34 million, and other revenue fell to $14 million from $22 million.

Perrigo expects a profit of $2.22 to $2.32 per share from continuing operations in fiscal 2010. Excluding one-time items, the company projected a profit of $2.35 to $2.45 per share, up from $2 to $2.12 per share.

Analysts expect $2.11 per share on average excluding items.

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