UPDATE: Deutsche Bank Raises PT on Perrigo Following Fera Pharmaceuticals Agreement Announcement

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Perrigo PRGO, and raised the price target from $117.00 to $120.00.

In the report, Deutsche Bank noted, “Perrigo announced today that it has entered into an agreement to acquire a portfolio of nine generic ophthalmic ointment and solution products from privately-held Fera Pharmaceuticals for approximately $93M upfront. In addition, there are contingent payments totaling approximately $36M – a portion of which is related to securing additional product rights from Fera. According to Perrigo, this portfolio generated net revenue of more than $30M during calendar year 2012, representing a purchase price of ~3x sales – which is largely in-line with niche generic assets that have relatively modest/minimal competition. According to IMS, the largest of these products are topical anti-infectives bacitracin (~68% of Fera ophthalmics LTM sales) and erythromycin (~26% of Fera ophthalmics LTM sales).”

Perrigo closed on Monday at $119.51.