Perrigo Company (PRGO) announced the launch of its generic version of the privately held Arbor Pharma’s Nitrolingual pumpspray (nitroglycerin lingual spray: 400 mcg). Perrigo launched the product following the final approval granted by the U.S. Food and Drug Administration (:FDA) to its abbreviated new drug application (ANDA) for the generic version of the spray.
With Perrigo being the first to file, the company will enjoy 180 days of marketing exclusivity. We note that the branded product is marketed for providing acute relief from an attack or prophylaxis of angina pectoris due to coronary artery disease. Perrigo stated in its press release that Nitrolingual pumpspray annual sales were approximately $65 million.
The launch of the new product is in line with Perrigo’s focus on adding new products to broaden its product portfolio. Perrigo expects to launch more than 75 new products in fiscal 2014 (ending Jun 28, 2014) contributing approximately $190 million to fiscal 2014 revenues.
The FDA approval and the subsequent launch of Perrigo’s generic version of the spray is a boost to Perrigo’s already established Rx Pharmaceuticals (generics) segment. The unit performed encouragingly during the final quarter of fiscal 2013 with net sales improving 24% to $195 million. We are impressed by the series of launches at the Rx Pharmaceuticals segment.
Though impressed by the news on Nitrolingual pumpspray, we believe investor focus will remain on Perrigo’s impending acquisition of Elan Corporation (ELN). The cash and stock deal ($8.6 billion), cleared by the boards of directors of both the companies, is expected to close by the end of calendar year 2013. On completion of the deal, Perrigo’s revenue stream would be boosted as it will receive significant royalties on multiple sclerosis drug Tysabri from Biogen Idec Inc. (BIIB).
Perrigo currently carries a Zacks Rank #3 (Hold). Right now, Gilead Sciences Inc. (GILD) looks attractive, with a Zacks Rank #1 (Strong Buy).