Perrigo Company plc (PRGO) and partner Catalent Pharma Solutions have settled their patent related dispute with Teva Pharmaceutical Industries Limited (TEVA) pertaining to Teva’s respiratory drug ProAir HFA. Following the settlement, Perrigo and Catalent can sell limited units of Perrigo's generic version of the inhaler from Dec 19, 2016 through Jun 30, 2018, The limits will no longer be applicable after Jun 30, 2018.
We note that ProAir is marketed for the treatment or prevention of bronchospasm with reversible obstructive airway disease as well as the prevention of exercise-induced bronchospasm in patients aged fours years and above. The branded version of the drug recorded sales of approximately $1.4 billion over the past 52 weeks according to the data released by Symphony Health Solutions.
We remind investors that Perrigo had filed an abbreviated new drug application with the FDA, seeking to market its generic version of ProAir HFA in 2012. Teva had challenged the application. However, the litigation has been dismissed following the settlement.
The generic segment at Perrigo (Rx Pharmaceuticals) has been performing encouragingly buoyed by quite a few approvals over the past few months. Segmental sales climbed 18% year over year to $223.4 million in the third quarter of fiscal 2014 (ended Mar 29, 2014). The performance of the segment was a bright spot in what was a disappointing quarter for Perrigo otherwise. Perrigo expects fiscal 2014 revenues from the segment to grow in the range of 26% to 30% on a year-over-year basis.
Perrigo carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Mallinckrodt (MNK) and Regeneron Pharmaceuticals (REGN). Both the stocks carry a Zacks Rank #1 (Strong Buy).