(PRGO - Free Report
) has acquired 2 more laboratories this quarter in a focused effort on growth in existing markets. The company is also coming off of a record quarterly earnings report.
Perrigo is the nations largest manufacturer of store brand over-the-counter pharmaceutical products and also manufactures store brand nutritional products. Store brand products are sold by national and regional supermarket, drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands.
The Company's products include analgesics, cough and cold remedies, antacids, laxatives, feminine hygiene and smoking cessation products, and vitamins, nutritional supplements and nutritional drinks.
Acquired Mexican Manufacturer
On Oct 6 Perrigo announced that it acquired Laboratorios Diba S.A. in an all-cash transaction for $25 million. The manufacturer is expected to add $15 million in sales per year.
Perrigo has been in Mexico for over 60 years, but the deal will provide the company with 150 new formulas and 50 new trademarks.
The company also acquired JB Laboratories for $44 million in another all-cash transaction. The Michigan based lab is expected to produce $70 million in sales.
A patent infringement lawsuit brought on by Johnson & Johnson was dismissed on Sep 18. Perrigo can now pursue FDA approval of its cream that will be sold as a generic form of Monistat-1. Once on shelves it will be under store brand names.
Record Annual Results
Perrigo announced record annual results on Aug 18 in its fourth quarter earnings announcement. Revenue for full-year 2008 was $1.8 billion, a record level, and a 26% increase from 2007. Net income was $1.58 per share, an 81% increase.
Management projects 2009 earnings to be between $1.90 and $1.98.
Share of PRGO have developed 2 levels of support, at $32 and $34, over the past 6 months. The stock has struggled to maintain $34 per share, but has strong support just below, at $32. Take a look at the chart below.