PRGO
Perrigo Company PLC
Healthcare
06/27/2014
Presented
| Date | 06/24/2014 |
| Price | $145.00 |
| Market Cap | $0.02B |
| Ent Value | $0.02B |
| P/E Ratio | 62.38x |
| Book Value | $69.00 |
| Div Yield | 0.3% |
| Shares O/S | 133.80M |
| Ave Daily Vol | 1,200,000 |
| Short Int | 1.79% |
Current
| Price | $24.30 |
| Market Cap | $3.31B |
| Perrigo Company Public Limited Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients (API) primarily in the United States, Israel, the United Kingdom, Mexico, and Australia. Its Consumer Healthcare business offers various OTC and nutrition products, including analgesics, cough and cold remedies, and gastrointestinal and feminine hygiene products, as well as vitamins, dietary supplements, and nutritional drinks. The company’s Nutritionals business develops, manufactures, markets, and distributes infant formula, pediatric nutritionals and vitamins, minerals, and supplements primarily under the Centrum, One-A-Day, Flintstones, and Osteo-Bi-Flex brands. Its Rx Pharmaceuticals business develops, manufactures, and markets a portfolio of generic prescription drugs in topical dosage forms, such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions, and powders, as well as controlled substances, injectables, hormones, and oral liquids and oral solid dosage forms. The company’s Active Pharmaceutical Ingredients (API) business develops, manufactures, and markets differentiated APIs and finished dosage forms for the branded and generic pharmaceutical industries. In addition, Perrigo Company Public Limited Company is developing TYSABRI for the treatment of multiple sclerosis and crohn’s disease; and ELND005 for the treatment of Alzheimer’s disease and bipolar disorder. Its Pharmaceutical and Medical Diagnostic Products business markets and manufactures branded prescription drugs under licenses; and imports other pharmaceutical and medical diagnostic products. The company sells its products to drug stores, wholesalers, distributors, hospital systems, and group purchasing organizations. Perrigo Company Public Limited Company was founded in 1887 and is headquartered in Dublin, Ireland. |
Publicly traded companies mentioned herein: Biogen Idec (BIIB), CVS/ Caremark (CVS), Johnson & Johnson (JNJ), Perrigo Company PLC (PRGO), Walgreens (WAG)
Highlights
The presenter is long shares of Perrigo (PRGO), a leading supplier of over-the-counter (OTC)/ prescription pharmaceuticals and nutritional products, as well as active pharmaceutical ingredients (APIs). PRGO paid $8.6 billion for Elan (July 2013) right after Royalty Pharma’s failed attempt to acquire the Irish-domiciled specialty pharma company. In addition to receiving royalties on MS blockbuster Tysabri, PRGO got $2 billion in cash and a tax shield worth ~$2 billion (NPV). He likes that PRGO has a “huge” manufacturing, quality control, and logistics advantage over smaller competitors in the OTC market (they have 75% share of store-branded drugs sold in CVS and Walgreens), and sees optionality around the many ways Tysabri could be monetized.
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