Perrigo Company plc (NYSE: PRGO) released Q2 results, prompting a 19% spike by midday.
A global leader in healthcare Perrigo released positive Q2 as the rest of healthcare companies are feeling the fire amidst a price decline and decrease in sales of generic meds. Perrigo instead has benefitted from new product launches and the strength of its over-the-counter segment, as well as adjusting guidance a year ago, which, “I think we were prudent at the time in doing that and the data has played out at least so far to what we expect and saw,” according to John Hendrickson, CEO.
The company reported a $69.9 million loss compared to $534.3 million this time last year, adjusted earnings-per-share were recorded at $1.22, and revenue rose $1.238 billion. Every one of these numbers beat estimates as Perrigo coasted to a comfortable Q2 and the subsequent rise in stock.
Perrigo benefited from a diversified strategy, with strong profits coming in from Mexico and launching five new pharmaceutical products as well as filling 21 new generic drugs for approval from the FDA. Even though the market has not been kind to pharmaceuticals recently, Perrigo has found a way to climb out of the proverbial hole and position itself for growth in an adverse environment. The strategy should continue to yield results as the combination of new products and pending-for-approval products should help fill their coffers.