Written by: Aaron Katsman | April 25, 2008
Aaron Katsman
www.IsraelNewsletter.com
Perrigo (PRGO) a company that develops, manufactures and distributes over-the-counter and prescription pharmaceuticals, announcedthat they received approval from the FDA to market for a Nicotine based smoking cessation gum.
This is another in a long line of wins the company has experienced of late. Shares of Perrigo have bucked the market trend over the last 6 months and have continued to move sharply higher. Commenting on the news, CEO Joseph C. Papa said, “This approval of orange-flavored, coated nicotine gum extends our leading store brand position. Our expanded range of smoking cessation products also includes coated mint-flavored gum, coated fruit-flavored gum, uncoated gum and lozenges.”
The estimated market for over-the-counter nicotine gum and lozenge products is around three quarters of a billion dollars. So this is clearly a big potential earnings driver for the company.
I have never smoked so I have no idea what it’s like to try and stop. But from what I understand, the hardest part is trying to break the cravings from nicotine addiction as well as certain activities that you do when smoking. That those activities ‘call’ for you to smoke. The nicotine gum helps negate the cravings associated with smoking, freeing you up to work on your ability to do certain activities without smoking.
As someone who chews gum like it’s going out of style, but also can’t refuse a cheese danish, I hope they come out with a gum, that helps cut the craving for eating and helps you to lose weight.
Disclosure: Author’s fund has a position in PRGO, fund has no position in any other stock mentioned as of 4/25/08.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Aaron Katsman | December 11, 2007
Aaron Katsman
IsraelNewsletter.com
Great news for all of you heartburn sufferers. Perrigo(PRGO), the world’s largest manufacturer of OTC pharmaceutical products for the store brand market, announced that the Food & Drug Administration granted final approval to partner Dexcel Pharma Technologies Ltd. for over-the-counter generic heartburn drug tablets.
As the exclusive U.S. marketer and distributor of omeprazole for the over-the-counter market, Perrigo said it expects to begin shipments during the first quarter with full-year annual sales estimated between $150 million and $200 million.
This is a huge win for the healthcare supplier. The company raised guidance for ‘08, to between $1.32 and $1.47 per share, between 20-25 cents higher than their previous forecast.
Perrigo has been a huge winner in ‘07, and sure looks poised to continue moving upward in 2008.
Disclosure: Author’s fund owns stock in and is long PRGO. He holds no position in any other stock mentioned, as of 12/11/07.
Please see our Disclaimer HERE.
NEW! Introducing Israel Opportunity Investor, our monthly subscription-only newsletter. Stay ahead of the game and make smart decisions in Israel stocks. Go here to learn more.
Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
Written by: Aaron Katsman | November 16, 2007
Aaron Katsman
IsraelNewsletter.com
With yesterday’s news that Barry Bonds was indicted on perjury charges, I thought it would be appropriate to give an Israeli stock whose YTD performance has been so good, it’s as if they are on steroids. Funny enough, they also happen to be a pharmaceutical company.
Perrigo(PRGO) has surged about 80% YTD. Perrigo is a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and consumer products. The Company is the world’s largest manufacturer of OTC pharmaceutical products for the store brand market. While it’s not technically an Israeli company, after all the are based in Michigan and have been around for more than 100 years, they do a lot of their development and manufacturing in Israel, and they bought an Israeli Pharma company a few years ago.
The company had a great quarter and raised their outlook. They raised their fiscal ‘08 outlook range to between $1.12 and $1.22 a share. It had earlier forecast earnings of $1.00 to $1.10 per share.
While they don’t produce anything that will make you a home-run champ, they are launching a new heartburn drug. Barry, with all the legal trouble you may want a prescription.
Please see our Disclaimer HERE.
Disclosure: Author has a position in PRGO as of 11/16/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
