Three months ago, Perrigo Company (NYSE:PRGO; TASE:PRGO) announced the huge acquisition of Ireland's Elan Corporation plc (NYSE; LSE; Dublin: ELN) for $8.6 billion in cash and shares. The deal has not yet been closed, but even without it, Perrigo's business is showing growth. The company published strong quarterly results today, beating the analysts' forecasts. Perrigo's fiscal year ends in June; this is its financial report for the first fiscal quarter of 2014.
Revenue rose 21.3%, compared with the corresponding quarter, to $933 million, beating the analysts' consensus of $900 million. GAAP-based net profit rose 5.5%, compared with the corresponding quarter, to $111 million, and non-GAAP net profit rose 20.4% to 144 million ($1.52 per share), beating the analysts' consensus by $0.11 per share.
Revenue in Perrigo's core business, consumer healthcare, rose 19.5% to $539 million. The acquisitions of Sargeant and Velcera contributed $42 million revenue, and new products contributed $17 million. Rx pharmaceuticals sales rose 25% to $204 million, primarily due to the acquisitions of Rosemont and Fera. Nutritionals sales, including infant formula, which previously had not grown as expected, rose by 24.8% to $129 million. Perrigo says that all product categories within the segment grew year-over-year.
"The strength of our business model was clearly evident this quarter. Every segment experienced double-digit organic sales growth," said Perrigo chairman and CEO Joseph Papa. "We are working hard to close the acquisition of Elan Corporation by the end of this calendar year and believe we will continue to be in a great position to deliver shareholder value."
Perrigo has a market cap of $12.1 billion. It is a generic drug company that specializes in over-the-counter drugs that are sold under store labels. In the past few years, it has expanded to new markets, including infant formula and veterinary products. Its Israeli operations began with the acquisition of Agis Pharmaceuticals several years ago, which resulted in the company's listing on the Tel Aviv Stock Exchange (TASE).
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2013
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