Perrigo Could Benefit From Approval of The First US Over-The-Counter Birth Control Pill
Over-the-counter birth control could be arriving in the US — and one pharma company stands to benefit. Last week, independent advisors to the US FDA unanimously recommended approving Opill asto be the first US over-the-counter birth control pill.
According to a recent study, barriers toin accessing US reproductive health care havehas increased between 2017 and 2021. And Opill’s approval would expand American access to contraceptives:
- Opill costs ~$10 or less per month compared to existing prescriptions that can cost 3x as much — benefiting ~10% of uninsured women with a lower price option, per Canaccord Genuity’s Susan Anderson.
- Biden is under pressure to expand contraceptive options — with abortion access being limited after the Supreme Court overturned Roe v. Wade last year.
The FDA’s advisors think the pill’s benefits outweigh the health risks, where serious side effects are uncommon — as 100+ countries already offer over-the-counter birth control.
The company behind Opill
Perrigo’s (NYSE:PRGO) stock has been hammered in recent years — and has since repositioned itself from a generic drugs company into a consumer health company.
Last year, Perrigo acquired the company behind Opill — which could become the “company’s most important product” for sales growth, per Raymond James analyst Elliot Wilbur.
What are Opills’ odds? Per Anderson, the FDA follows its advisors’ advice in ~80% of cases, and the decision is expected to come this summer.