Perrigo Company (PRGO, Financial) filed Annual Report for the period ended 2010-06-26.
Perrigo Company has a market cap of $5.2 billion; its shares were traded at around $56.95 with a P/E ratio of 21.7 and P/S ratio of 2.6. The dividend yield of Perrigo Company stocks is 0.4%. Perrigo Company had an annual average earning growth of 16.8% over the past 10 years. GuruFocus rated Perrigo Company the business predictability rank of 2.5-star.PRGO is in the portfolios of Edward Owens of Vanguard Health Care Fund, John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
On April 30, 2010, the Company acquired 100% of the shares of privately held PBM for $841,367, which included cash acquired as of the transaction date of $30,591. Headquartered in Gordonsville, Virginia, PBM was the leading manufacturer and distributor of store brand infant formulas, pediatric nutritionals and baby foods sold by leading retailers in the mass, club, grocery and drug channels in the U.S., Canada, Mexico and China. The acquisition of PBM expands the Companys store brand leadership into a substantial adjacent product category and is expected to add approximately $300,000 of annual sales in fiscal 2011. PBMs results of operations are recorded in the Companys Consumer Healthcare segment beginning in the Companys fourth quarter of fiscal 2010.
On March 8, 2010, the Company acquired 100% of the outstanding shares of privately held Orion Laboratories Pty Ltd. (Orion) for $48,638 in cash. Located near Perth, Western Australia, Orion was a leading supplier of OTC store brand pharmaceutical products in Australia and New Zealand. In addition, Orion manufactured and distributed pharmaceutical products supplied to hospitals in Australia. The acquisition of Orion expands the Companys global presence and product portfolio into Australia and New Zealand and is expected to add more than $30,000 of annual sales in fiscal 2011. Orions results of operations are recorded in the Companys Consumer Healthcare segment beginning in the Companys third quarter of fiscal 2010.
The Company launched several new products in fiscal 2010, most notably coated nicotine polacrilex lozenge USP, 2mg and 4mg in cherry and cinnamon flavors, polyethylene glycol 3350, miconazole cream and suppository, which compete with the national brands Commit® lozenge, MiraLAX® and Monistat®-1, respectively. Net sales related to new products were approximately $70,200 for fiscal 2010, $328,100 for fiscal 2009 and $191,300 for fiscal 2008. In fiscal 2008 and 2009, the Company considered a Consumer Healthcare product to be new if it was added to the Companys product lines within 18 months prior to the end of the period for which net sales are being measured, unless otherwise noted. For fiscal 2010, the Company shortened this period to 12 months.
On May 26, 2010, the Company announced that it acquired the pending ANDA for the generic therapeutical equivalent of HalfLytely® and Bisacodyl tablets bowel prep kit from Novel Laboratories, Inc. (Novel) for $3,000 in cash and a $2,000 milestone payment based on tentative approval of the ANDA by the FDA. The milestone payment and the full amount of the purchase price, which related to acquired research and development, was capitalized and immediately written off as in-process research and development in the fourth quarter of fiscal 2010 in the Companys Rx Pharmaceuticals segment.
In November 2008, the Company acknowledged the settlement of patent litigation relating to a generic to Nasacort® AQ (triamcinolone acetonide nasal spray) product brought by Sanofi-Aventis against Teva Pharmaceutical Industries Ltd. (Teva) (formerly Barr Laboratories, Inc.), a partner with the Company for this product and the holder of the ANDA. The Company will share in the costs and benefits of the settlement agreement between Teva and Sanofi-Aventis and Tevas subsequent marketing of the product under the agreement, which will commence on June 15, 2011 or earlier in certain circumstances. In addition, the Company completed certain milestones with respect to the development of this product in the second fiscal quarter of 2009 resulting in recognizing revenue in the amount of $2,500. On July 31, 2009, Teva received FDA final approval for its ANDA. This event triggered additional milestone payments for the Company that resulted in the recognition of an additional $11,500 of revenue in fiscal 2010.
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Perrigo Company has a market cap of $5.2 billion; its shares were traded at around $56.95 with a P/E ratio of 21.7 and P/S ratio of 2.6. The dividend yield of Perrigo Company stocks is 0.4%. Perrigo Company had an annual average earning growth of 16.8% over the past 10 years. GuruFocus rated Perrigo Company the business predictability rank of 2.5-star.PRGO is in the portfolios of Edward Owens of Vanguard Health Care Fund, John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
In March 2009, based on managements strategic review of its portfolio of businesses, the Company committed to a plan to sell its Israel Consumer Products business. This business primarily sold consumer products to the Israeli market, including cosmetics, toiletries and detergents, and was previously reported as part of the Companys Other category. In the third quarter of fiscal 2009, the Israel Consumer Products business had met the criteria set forth in Accounting Standard Codification (ASC) 360-10 to be accounted for as discontinued operations. On February 26, 2010, the Company completed the sale of its Israel Consumer Products business to Emilia Group, a subsidiary of O. Feller Holdings Ltd., for approximately $47,000, of which approximately $11,000 is contingent upon satisfaction of contingency factors specified in the agreement. The Israel Consumer Products business is considered a discontinued operation, and as a result, all consolidated financial statements in this Annual Report on Form 10-K have been adjusted accordingly to reflect this financial statement presentation. See Note 3 of the Notes to Consolidated Financial Statements for information concerning the sale of Israel Consumer Products.On April 30, 2010, the Company acquired 100% of the shares of privately held PBM for $841,367, which included cash acquired as of the transaction date of $30,591. Headquartered in Gordonsville, Virginia, PBM was the leading manufacturer and distributor of store brand infant formulas, pediatric nutritionals and baby foods sold by leading retailers in the mass, club, grocery and drug channels in the U.S., Canada, Mexico and China. The acquisition of PBM expands the Companys store brand leadership into a substantial adjacent product category and is expected to add approximately $300,000 of annual sales in fiscal 2011. PBMs results of operations are recorded in the Companys Consumer Healthcare segment beginning in the Companys fourth quarter of fiscal 2010.
On March 8, 2010, the Company acquired 100% of the outstanding shares of privately held Orion Laboratories Pty Ltd. (Orion) for $48,638 in cash. Located near Perth, Western Australia, Orion was a leading supplier of OTC store brand pharmaceutical products in Australia and New Zealand. In addition, Orion manufactured and distributed pharmaceutical products supplied to hospitals in Australia. The acquisition of Orion expands the Companys global presence and product portfolio into Australia and New Zealand and is expected to add more than $30,000 of annual sales in fiscal 2011. Orions results of operations are recorded in the Companys Consumer Healthcare segment beginning in the Companys third quarter of fiscal 2010.
The Company launched several new products in fiscal 2010, most notably coated nicotine polacrilex lozenge USP, 2mg and 4mg in cherry and cinnamon flavors, polyethylene glycol 3350, miconazole cream and suppository, which compete with the national brands Commit® lozenge, MiraLAX® and Monistat®-1, respectively. Net sales related to new products were approximately $70,200 for fiscal 2010, $328,100 for fiscal 2009 and $191,300 for fiscal 2008. In fiscal 2008 and 2009, the Company considered a Consumer Healthcare product to be new if it was added to the Companys product lines within 18 months prior to the end of the period for which net sales are being measured, unless otherwise noted. For fiscal 2010, the Company shortened this period to 12 months.
On May 26, 2010, the Company announced that it acquired the pending ANDA for the generic therapeutical equivalent of HalfLytely® and Bisacodyl tablets bowel prep kit from Novel Laboratories, Inc. (Novel) for $3,000 in cash and a $2,000 milestone payment based on tentative approval of the ANDA by the FDA. The milestone payment and the full amount of the purchase price, which related to acquired research and development, was capitalized and immediately written off as in-process research and development in the fourth quarter of fiscal 2010 in the Companys Rx Pharmaceuticals segment.
In November 2008, the Company acknowledged the settlement of patent litigation relating to a generic to Nasacort® AQ (triamcinolone acetonide nasal spray) product brought by Sanofi-Aventis against Teva Pharmaceutical Industries Ltd. (Teva) (formerly Barr Laboratories, Inc.), a partner with the Company for this product and the holder of the ANDA. The Company will share in the costs and benefits of the settlement agreement between Teva and Sanofi-Aventis and Tevas subsequent marketing of the product under the agreement, which will commence on June 15, 2011 or earlier in certain circumstances. In addition, the Company completed certain milestones with respect to the development of this product in the second fiscal quarter of 2009 resulting in recognizing revenue in the amount of $2,500. On July 31, 2009, Teva received FDA final approval for its ANDA. This event triggered additional milestone payments for the Company that resulted in the recognition of an additional $11,500 of revenue in fiscal 2010.
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