Perrigo Company (PRGO - Analyst Report) recently announced that it has launched over-the-counter (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 - Analyst Report) Nicorette mini lozenge. Perrigo stated in its press release that annual sales of Nicorette mini lozenge are more than $30 million at all retail outlets.
We remind investors that earlier this month, Perrigo announced the launch of betamethasone valerate foam 0.12%. It is the generic equivalent of Stiefel Laboratories’ Luxiq foam. Stiefel is a GlaxoSmithKline company.
We note that the product was approved in the US in Nov 2012 for the relief of corticosteroid-responsive skin conditions of the scalp or scalp psoriasis. The offering had annual branded sales of about $40 million.
We believe that Perrigo’s dominant position in the store brand OTC drug market has further strengthened recent approvals. 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.
Perrigo, an S&P 500 stock, carries a Zacks Rank #3 (Hold) in the short run. S&P 500 companies that currently look better-positioned include Mylan Inc. (MYL - Analyst Report) and Eli Lilly and Company (LLY - Analyst Report). Both Zacks Rank #2 (Buy) stocks are expected to perform well in the coming quarters.