The Nutritionals unit at Perrigo Company (PRGO) has inked a five-year supply agreement with Ferrara Candy Company, one of the leading gummy manufacturers, to manufacture store brand gummy vitamins and dietary supplements. These are meant to be sold at leading retailers across the U.S.
As per the deal, Perrigo will gain exclusive rights to a full line of store brand gummy vitamin, mineral and supplement products which will utilize Ferrara's gummy technology and manufacturing capabilities. Moreover, Ferrara's gummy technology can be utilized for other over-the-counter (OTC) products as well.
As per IRI multi-outlet data sales of vitamin and dietary supplement gummies are expected to reach $1 billion by 2017, which currently worth $625 million.
Sales in the company’s Nutritional division have been disappointing for the last couple of quarters primarily due to lower sales from products in the infant/toddler food and VMS units. The division reported revenues of $125.3 million for the first quarter of fiscal 2015, down 3% year over year.
In a separate announcement, Perrigo said that it has launched the generic version of Galderma Laboratories’ Clobex spray (0.05%). Perrigo was also the first company to file for the generic version of Clobex spray and will therefore enjoy 180 days of generic exclusivity. Clobex spray is approved for the treatment of moderate-to-severe plaque psoriasis. As per IMS Health, 52-week sales of the product were approximately $100 million.
Also, Perrigo announced the launch of its therapeutically equivalent version of AbbVie's (ABBV) AndroGel 1.0%, approved to treat adults having low or no testosterone. As per Symphony Health Solutions, yearly sales of AndroGel 1.0% were over $300 million.
Perrigo holds a Zacks Rank #3 (Sell). Some better-ranked stocks in the healthcare sector are Affymetrix Inc. (AFFX) and Amgen Inc. (AMGN). Both carry a Zacks Rank #1 (Strong Buy).
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