Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Perrigo Company (PRGO - Analyst Report) 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 - Analyst Report) 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 - Analyst Report) and WuXi PharmaTech (Cayman) Inc. (WX - Snapshot Report) carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDS ENLC 36.29 +1.60%