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Perrigo Company (PRGO - Analyst Report) recently announced that it is seeking US approval to market its generic version of Eli Lilly and Company’s (LLY - Analyst Report) Axiron. The drug is marketed for treating males aged above 18 years, who have low or no testosterone. To achieve the objective, Perrigo filed an Abbreviated New Drug Application (ANDA) with the FDA. Perrigo’s application has been challenged.

Apart from the patent challenge, Perrigo was also in the news when it gained final approval for its generic version of Allergan Inc.’s (AGN - Analyst Report) Sanctura XR. The drug is marketed for the treatment of overactive bladder with symptoms of urge urinary incontinence, urgency and urinary frequency.

The generic (Rx Pharmaceuticals) segment at Perrigo has witnessed multiple approvals/launches over the past few months. The segment performed encouragingly in the third quarter of fiscal 2013 (ended March 30, 2013) with net sales improving 21.7% to $189.4 million.

Sales of new products boosted segmental revenues by $18 million. Inclusion of results of Rosemont Pharma boosted sales by $8 million. Adjusted gross profit for the segment increased 19.3% to $109.7 million.

We are also impressed by Perrigo’s growth-by-acquisition strategy. On Apr 1, 2013, Perrigo announced the completion of the acquisition of companion animal health company, Velcera, Inc.

The deal, which has strengthened Perrigo’s position in the over-the-counter retail pet healthcare market, is encouraging. In Feb 2013, Perrigo acquired UK-based privately held pharmaceutical company, Rosemont Pharmaceuticals Ltd. By acquiring Rosemont Pharma, Perrigo has strengthened its position in the UK oral liquid formulations space.

Perrigo carries a Zacks Rank #3 (Hold). Jazz Pharmaceuticals (JAZZ - Analyst Report) appears to be more attractive with a Zacks Rank #1 (Strong Buy).

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