Perrigo on Wednesday said second-quarter prescription drug revenue increased 10 percent year-over-year to $278 million, driven by new product sales including launches of generic versions of clobetasol spray and testosterone gel. Net profit declined 57 percent to $56.4 million due to higher expenses, while overall revenue grew from $1.1 billion in the year-ago quarter to about $1.5 billion for the period ended June 30, in line with analyst expectations.
Perrigo CEO Joseph Papa said the company "delivered a strong financial performance in the quarter," adding that "our durable business model and future growth prospects are self-evident as we continue to progress on our stand-alone strategy." Perrigo resisted advances from Netherlands-based Mylan, rejecting the company's raised offer in April of $75 in cash and 2.3 Mylan ordinary shares per Perrigo share.
Analysts recently suggested that Mylan, which had been fending off a hostile bid from Teva, now has "less leverage" to acquire Perrigo after Teva abandoned its pursuit of the company last month in favour of Allergan's global generic pharmaceuticals business for $40.5 billion.
According to Papa, even if Mylan shareholders vote in favour of moving ahead with a tender offer for Perrigo at a special meeting on August 28, Perrigo still has options to thwart the bid, including making potential acquisitions of its own. Papa indicated that other companies have held talks with him, but he declined to be more specific. The executive, who reiterated that Mylan's unsolicited takeover offer "substantially undervalues our business," also asserted "there's no doubt that there are differences in the management styles of the two companies."
In other quarterly results, sales for Perrigo's consumer healthcare segment fell 3 percent from the year-ago period to $746 million, in part due to currency effects and discontinued products, while revenue generated by the branded consumer healthcare unit, which comprises assets from its recent purchase of Omega Pharma, totalled $401 million. The company additionally recorded $84 million in royalty revenue related to Biogen's multiple sclerosis therapy Tysabri.
For the full year, Perrigo continues to anticipate per-share earnings in the range of $7.50 to $8, representing an increase of 20 percent to 28 percent over 2014. Meanwhile, analysts project full-year earnings of $7.64 per share.
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