Perrigo Company (PRGO) recently commenced shipping its generic version of Adams Respiratory Therapeutics’ drug Mucinex (600mg extended-release tablets). Adams Respiratory Therapeutics is a subsidiary of Reckitt Benckiser Group.
Mucinex, an expectorant, is indicated to give relief from chest congestion. The drug is also used to ensure that coughs are more productive. The branded drug registered sales of approximately $135 million through food, drug and mass merchandisers in the last 12 months.
We remind investors that in Jan 2012, Perrigo won a favorable judgment from a US court, regarding a patent dispute related to its generic version of Mucinex. The court ruled that Perrigo’s generic version of Mucinex did not infringe the challenged patent.
The launch of the store brand version of Mucinex further strengthens its dominant position in the store brand over the counter drug market. Perrigo boasts partnerships with retailers, pharmacies and mass merchandisers for which it manages a wide range of activities including regulatory approvals, customized branding and packaging, and in-store advertising.
Another important launch at Perrigo targeted at the store brand market this year, was that of the OTC nicotine polacrilex mini lozenge, 2 mg (mint flavor) and 4 mg (mint flavor). We note that the product was approved by the US Food and Drug Administration (:FDA) in Oct 2012 for reducing withdrawal symptoms like nicotine craving, associated with quitting smoking.
This is the first marketed mini lozenge product targeting the store brand market. The mint flavored mini lozenge can be compared to GlaxoSmithKline's (GSK) Nicorette mini lozenge.
We believe Perrigo has a sustainable and diversified product portfolio. The company's strong position in the brand OTC pharmaceutical market and growing generics and active pharmaceuticals ingredient businesses are expected to drive growth in the coming quarters. We are also impressed by Perrigo's strong pipeline.
Perrigo carries a Zacks Rank #2 (Buy) for the short run. Meanwhile, pharma stocks such as QLT Inc. (QLTI) and WuXi PharmaTech (Cayman) Inc. (WX) carry a Zacks Rank #1 (Strong Buy).
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