

March 20, 2013 08:00 ET
Drug Companies Grow Through Acquisitions
The ShinesRooms.com Provides Stock Research on Perrigo Co. and Prestige Brands Holdings Inc.
NEW YORK, NY--(Marketwire - Mar 20, 2013) - Markets are still in a bull's phase, despite minor pullbacks recently. The healthcare sector also performed well despite concerns about the reforms and allied issues. We took a look at the sector and the major companies including Prestige Brands Holdings Inc. (
Access our free reports on Perrigo Co. and Prestige Brands Holdings Inc. Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
[ http://www.ShinesRooms.com/PRGO032013.pdf ]
[ http://www.ShinesRooms.com/PBH032013.pdf ]
Perrigo Co. is riding high as recently its Testosterone Gel 1% received FDA approval. The drug is expected to have peak annual revenue of $705 million. The generic drug maker is also boosting its position in the market through acquisitions. It acquired Rosemont Pharmaceuticals Ltd. in a $283 million deal. Rosemont is based out of the UK and deals in oral liquid formulations. It has about 150 liquid medications in its portfolio. The acquisition is expected to be accretive to the company's EPS in FY 2013.
However, this is not the only acquisition made by Perrigo Co. The company had earlier bought Velcera Inc., an animal healthcare company. The deal was valued at $160 million. With these acquisitions, the company has not only enhanced its product portfolio, but it also has gained access to new markets.
Additionally, Perrigo recently reported its quarterly results. The company's adjusted net income for the quarter which stood at $1.36 per share, beating consensus estimates of $1.31 per share in EPS. It reported its revenue at $882.9 million, marginally beating analysts' expectations of $880.8 million. The company derives a major part of its revenue from consumer healthcare segment, which showed 14 percent increase in its quarterly revenue. The stock outperformed the broader markets in 2013 and gained 14.69 percent. It is expected to keep up its bullish stance.
Conversely, Prestige Brands Holdings Inc. announced 50.8 percent increase in its revenue for the third quarter of the year. The revenue figure stood at $160.2 million, up from $106.3 million for the previous year quarter. For the first nine months of the year, the company earned $469.1 million in revenue.
Prestige Brands also increased its net income from $0.19 per share to $0.24 per share. The jump represents 26.3 percent increase. For the period of first nine months, its net income increased 24 percent to $46.2 million. The stock is expected to perform well as the company increased its full year guidance for FY 2013. The company is also working on decreasing its debt level and boosting its margins.
Prestige Brands Holdings offered good returns to its investors as it grew 26.53 percent in 2013, outperforming the indices. In the past 52 weeks, it has traded in the range of $12.50 and $24.87 and appreciated more than 40 percent. On the strength of strong financial results reported recently, the stock is expected to perform well.
About Shinesrooms.com
Shine's Rooms is the brain child of David Shine, a 13 year Wall Street veteran with a stellar track record. For 13 years Shine has trained thousands of traders to navigate and profit from the markets. Using cutting edge technology, Shine provides you with a community in which you can trade alongside Shine and his Team as they guide you through the market's ever-changing landscape. ShinesRooms.com is the Ultimate Trading Environment for investors. Over the last 5 years our returns outpaced any of the major indexes. Sign up today to find out what you are missing at [ www.ShinesRooms.com ]
To view our disclaimer, visit this link [ http://www.shinesrooms.com/disclaimer.html ].