Recently, the European Union (EU) approved the proposed $41.1 billion merger between Schering-Plough (SGP) and Merck & Co. (MRK). The deal is awaiting approval from the U.S. Federal Trade Commission. The transaction is expected to close in the fourth quarter of this year. While approving the merger, the EU clarified that the tie-up will not hinder effective competition significantly in Europe, even though both participants in the merger operate in the field of prescription pharmaceuticals. While checking for overlaps in Europe, particularly in the fields of asthma and allergic rhinitis, the European body did not find the products to be close competitors. Consequently, the merger would not be considered to hog the market and choke other companies. As a reminder, Merck filed for EU approval last month after the completion of the sale of its 50% interest in animal health company Merial Limited (Merial) to ...

Perrigo Company (PRGO) has surprised on estimates the last two quarters as it reported record sales for fiscal 2009. PRGO has a PEG ratio of just 0.94.

Company Description

Perrigo manufactures over-the-counter and prescription pharmaceuticals, nutritional products and other consumer products. It also provides over-the-counter (OTC) products for various stores under those store brand names. For instance, it manufactures an acetaminophen product similar to the Tylenol brand.

Record Sales in 2009

On Aug 18, Perrigo reported fiscal fourth-quarter and full year 2009 results and saw record sales and earnings for the year. It was the first year the company reported $2 billion in sales, which was a 16% rise from 2008. It was also the second year in a row of record sales. The increase was driven by new product sales.

For the fourth-quarter sales grew by 7.1% to $508.2 million from $474.2 million in the fourth quarter of

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