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$PRGO 3Q15 10-Q: In 2Q15, PRGO announced that its FY-end will begin on Jan. 1 and end on Dec. 31 of each year, starting on Jan. 1, 2016. PRGO’s current FY will end on June 27, 2015, followed by a transition period from June 28, 2015 to Dec. 31, 2015. PRGO plans to disclose the results of the transition period on a Form 10-KT transition report.
$PRGO named Uwe Rohrhoff as CEO, effective Jan. 15, 2018, following the retirement of John Hendrickson. Rohrhoff was the former CEO at Gerresheimer AG. Hendrickson to remain with the company until March 15, 2018 to ensure successful transition.
$PRGO announced the launch of an AB rated generic version of Mycolog II Cream, which is indicated for the treatment of cutaneous candidiasis, a skin infection. Annual market sales for the generic versions of Mycolog II Cream for the 12 months ended September 2017 were approx. $81MM according to IMS Health.
$PRGO's net sales from Prescription Pharmaceuticals (RX) segment for 3Q17 were $251MM, relatively in-line compared to last year. Excluding the $10MM year-over-year impact of Entocort, net sales grew 4% led by new product sales of $31MM. Sales of existing products were lower by $22MM, due primarily to price erosion.
$PRGO's net sales from Consumer Healthcare International (CHCI) segment for 3Q17 decreased 3% from last year. Adjusted net sales grew about 5%. This was driven primarily by higher net sales in the cough, cold and allergy, analgesics, and lifestyle categories, in addition to new product sales of $11MM.
$PRGO's net sales for Consumer Healthcare Americas (CHCA) segment for 3Q17 fell to $599MM from $611MM a year ago. Adjusted net sales grew more than 1% on a constant currency basis. This was driven by higher sales in the gastrointestinal category along with higher sales in the animal health and Mexico businesses.
For calendar 2017, $PRGO lowered its GAAP EPS guidance to $0.74-0.89 from $0.84-1.09. Given continued positive execution across all business segments, the company lifted its calendar 2017 adjusted EPS outlook to $4.80-4.95 from $4.45-4.70.
$PRGO swung to a profit in 3Q17 from a loss last year, on lower costs and expenses. Net income was $44.5MM or $0.31 per share compared to a loss of $1.59Bil or $11.10 per share a year ago. Adjusted EPS grew 13% to $1.39. Net sales declined 2% to $1.23Bil, due to actions taken last year to sell non-profitable businesses.
Healthcare firm $PRGO said the FDA has approved the Abbreviated New Drug Application for its painkiller Exalgo-32mg. Perrigo expects to launch the Exalgo-32mg extended-release tablets by the end of this month. Exalgo is indicated for the management of moderate to severe pain in opioid-tolerant patients.
$PRGO got the final nod from the FDA for the store brand OTC equivalent of Nexium 24HR (esomeprazole magnesium) capsules, to treat frequent heartburns occurring 2 or more days a week. It also reached a settlement of patent litigation with AstraZeneca allowing for the store brand OTC equivalent of Nexium 24HR capsules to launch in Sept, 2017.
$PRGO received final approval from the U.S. Food and Drug Administration for its AB rated Abbreviated New Drug Application referencing Mycolog II Cream. This is indicated for the treatment of cutaneous candidiasis, which is a skin fungal infection causing a red, itchy rash. $PRGO anticipates launching this product in 4Q17.
$PRGO is looking for operating margin of 40% for full year 2017, and expects to leverage its expanding product portfolio to achieve it. The company attributes the margin turnaround in its Consumer Healthcare International Segment in 2Q17 to the restructuring carried out in the first half.
$PRGO repurchased about 812,000 shares in 2Q17. The 2017 sales outlook of business segments have been revised up to reflect new product launches and favorable currency movements. Perrigo expects to close the sale of its API business segment in the second half. Accordingly, the company removed adjusted operating income of $10MM from its guidance.
$PRGO said various measures adopted by the company in the first half of 2017 will result in a total debt pay down of about $2.6Bil by the end of the year, and further debt reduction in the coming years. The debt pay down actions resulted in an increase in cash flows, which would be used for returning capital to shareholders in future.
$PRGO expects to record GAAP earnings of $0.84-$1.09 per share in calendar year 2017. The company now estimates its full year adjusted earnings to be in the range of $4.45 to $4.7 per share, which includes the removal of about $0.05 per share related to the sale of the API business in second half.
Consumer goods firm $PRGO reported a net loss of $70MM or $0.49 per share in 2Q17, significantly lower than the $534.3MM or $3.73 per share loss registered a year earlier. The improvement was the result of strong performance by all segments. On a non-GAAP basis, the company posted a net income of $70MM. Net sales decreased 8% annually to $1.2Bil.