Perrigo Company plc PRGO announced the first-to-market launch of the over-the-counter ("OTC") version of hair re growth drug for the brand equivalent of women's Rogaine 5% minoxidil foam (minoxidil topical aerosol, 5% foam). The shipments of the new foam product have already started. The product is packaged and marketed as a store brand or retailer 'own label' brand. Annual sales of women's Rogaine® 5% minoxidil foam for the 12 months ending February 2017 were about $20 million.
Perrigo’s share price has decreased 15.5% year to date, while the Zacks classified Medical Products industry gained 8%.
Perrigo has a presence in the over-the-counter (OTC) market and sells infant formulas for the store brand market, generic extended topical prescription (Rx) products and specialty pharmaceutical drugs.
In Feb 2017, Perrigo’s reported preliminary numbers for 2016 and issued a lackluster guidance for 2017. The company expects 2017 net sales in the range of $5.0–$5.2 billion, including contributions from Tysabri and the Active Pharmaceutical Ingredients (API) unit.
The company expects adjusted earnings per diluted share in the band of $6.30–$6.65 in 2017.
The company announced that it has signed an agreement to sell the royalty stream that it receives on net sales of Tysabri, to Royalty Pharma for up to $2.85 billion..
The royalty divestment of Tysabri was one of the actions proposed by New York-based activist investor Starboard Value LP, in a letter issued in Sep 2016, wherein it revealed its 4.6% stake in Perrigo and suggested steps to improve the company’s dismal operating and financial performance.
Perrigo also announced the commencement of a restructuring program to find strategic alternatives for its API unit and said that it expects to reduce its global non-production workforce by 14% or 750 employees. This program is expected to yield more than $130 million in annual savings by mid-2018.
Zacks Rank & Key Picks
Perrigo currently carries a Zacks Rank #5 (Strong Sell). Some other better ranked stocks in the health care sector include Heska Corporation HSKA, Applied Genetic Technologies Corporation AGTC and Sunesis Pharmaceuticals SNSS . While Heska carries a Zacks Rank#1 (Strong Buy), Sunesis Sciences and Applied Genetic carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Heska’s earnings estimates increased from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018 over the last 30 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 291.54%.
Sunesis’ loss estimates narrowed 5.06% and 8.80% for 2016 and 2017, respectively, over the past 30 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.
Applied Genetic’s earnings estimates increased from 4 cents to 24 cents for 2017, while its loss estimates narrowed from $1.26 to 56 cents for 2018 over the last 30 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 222.92%.
Perrigo Company Price
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