Needham & Company maintains a 'Hold' on Perrigo Co. (PRGO); TEVA Comes Through With Allegra OTC Approval, “In Numbers” but Should Provide Additional Fuel

Needham & Company maintains a 'Hold' on Perrigo Co. (NASDAQ: PRGO).

Needham analyst says, "PRGO announced that its partner Teva Pharmaceuticals (Nasdaq: TEVA)(Strong Buy) received OTC approval for generic Allegra. PRGO will begin distributing the product under its store brand labels immediately. Allegra (fexofenadine), marketed by Sanofi-Aventis (NYSE: SNY)(Not/Rated), is an antihistamine indicated for the temporary relief of allergy symptoms. The product, a former blockbuster that generated ~$1.5B in 2005 sales before generic competition, now has sales annualizing at ~$160MM. Sanofi-Aventis received approval for an Allegra Rx-to-OTC switch in January 2011 and the product was subsequently launched by Chattem (subsidiary of Sanofi-Aventis) in early March 2011. Based on prior Rxto-OTC switches of non-sedating antihistamines, we estimate the OTC switch could generate $500MM+ in incremental brand sales and ~$100MM opportunity for PRGO’s store brand OTC products."

For more ratings news on Perrigo Co. click here and for the rating history of Perrigo Co. click here.

Shares of Perrigo Co. closed at $87.50 yesterday.

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