FDA approves first over-the-counter birth control pill in the U.S.; Perrigo stock jumps
Perrigo shares rose sharply after the U.S. Food and Drug Administration approved its over-the-counter birth control pill. It is the first approval of an over-the-counter oral contraceptive in the United States. Yahoo Finance Live breaks down the stock's reaction to the news.
Video Transcript
JULIE HYMAN: Well, news that broke just about a half hour ago. The FDA has approved an over-the-counter birth control pill for sale in the United States. It's the first time. It's called Opill. It's manufactured by Dublin-based Perrigo.
The company says, it will likely become available in the US by early 2024. So, again, this is the first daily US contraceptive, oral contraceptive approved for sale in the United States. So it's a big deal. 4 and 1/2% is the gain that we're seeing in those Perrigo shares right now.
BRAD SMITH: Yeah. I'm looking through this release by the FDA. And they're saying that today's approval marks the first time, as you were mentioning a non-prescription daily oral contraceptive will be available, and available option for millions of people in the United States. That coming from the director of the FDA's Center for Drug Evaluation and Research.
And they're saying that when used as directed, the daily oil, not oil-- oral contraception is safe and expected to be more effective than currently non-prescription contraceptive methods in preventing unintended pregnancies as well.
JULIE HYMAN: So this pill was available with a prescription--
BRAD SMITH: Yes.
JULIE HYMAN: --since 1973.
BRAD SMITH: Wow.
JULIE HYMAN: And it took this long for it to be available over the counter. Something that reproductive rights advocates have long been pushing for. In, at least 100, other countries, it is available without a prescription. So the US is late in this regard, I think, it's safe to say.
Opill is what it's known as commercially. That's what it's been known as I guess. With a prescription now, it's going to be known that way over the counter, as well. So we'll see what the pricing of this looks like.
Reportedly, Perrigo said earlier this year that it does want to make this drug affordable. So we'll be focused on that once the pricing comes out, once we get more information on when it is going to be made available. But certainly, a milestone here in the United States.
BRAD SMITH: Yeah. And shares reacting as such.
