Perrigo says sales of over-the-counter flu drugs rose, and write-down came off its books

Perrigo 2Q profit doubles without write-down

ALLEGAN, Mich. — Perrigo Co., the largest U.S. maker of store-brand over-the-counter drugs, said Tuesday profit more than doubled in its fiscal second quarter due to greater sales and as one-time charge came off its books.

Perrigo reported stronger sales for its consumer health care business, generating more revenue from products including gastrointestinal drugs, pain relievers, cough and cold remedies, and anti-smoking products. Revenue from recent acquisitions also helped.

Perrigo said generic drugs took market share from national brands. The company reported that the swine flu pandemic boosted its sales, as did a delay in the launch of a competing generic version of Prilosec, a heartburn drug. Perrigo also makes active ingredients for drugs, and said revenue from that business improved.

In the quarter ended Dec. 31, Perrigo said its profit grew to $50.9 million, or 55 cents per share, from $25 million, or 27 cents per share. Excluding one-time items it earned 70 cents per share. Revenue rose 7 percent to $583.2 million from $537.2 million.

Thomson Reuters says analysts were looking for a profit of 66 cents per share and $589.6 million in revenue. In morning trading, Perrigo shares rose $1.24, or 2.8 percent, to $45.44.

In the second quarter of 2009, the company took a $15.1 million write-down because auction rate securities it bought in Israel from Lehman Brothers lost value.

Perrigo said its consumer health care revenue increased 7 percent to $478.4 million from $446.4 million. Revenue from the Rx pharmaceutical division rose 38 percent, to $55.6 million from $40.4 million, and active pharmaceutical ingredient sales grew 16 percent, to $37 million from $31.9 million.

For the full year, Perrigo lifted its outlook to an adjusted profit of $2.55 to $2.65 per share, from prior guidance of $2.35 to $2.45 per share. The forecast excludes one-time costs and benefits.

Analysts are expecting a profit of $2.43 per share, on average.