Abortion ruling could benefit contraception sales, benefitting Perrigo - Raymond James

Jun. 27, 2022 8:05 AM ETPerrigo Company plc (PRGO)By: Jonathan Block, SA News Editor

Oral contraceptive pills and Morning after pills in woman hands.

toons17/iStock via Getty Images

Friday's U.S. Supreme Court decision that found there is no constitutional right to abortion will likely lead to a boost in over-the-counter (OTC) contraceptives, especially benefitting Perrigo (NYSE:PRGO), according to Raymond James.

"There is simply no company that could benefit more than PRGO from a potential shift towards more accessible contraception options that could be catalyzed by the Dobbs decision and the resulting financial impact could be significant," analyst Elliot Wilbur wrote.

Perrigo is a significant player in women's health, helped by the $2.1B acquisition of HRA Pharma that was finalized earlier this year. That added the ellaOne and and NorLevo emergency contraceptive pills, Hana birth control pill, and Mona Lisa intrauterine device to its portfolio.

Perrigo also markets the Option 2 emergency contraceptive pill, a generic of Plan B.

Wilbur wrote that HRA is expected to file an application to the U.S. FDA for approval of an OTC daily birth control pill sometime this year.

He noted that expanded access to contraceptives has support from both sides of the political aisle and "the Dobbs decision is likely the catalyst needed to put OTC access to oral contraceptives on the front page."

Emergency contraceptives require a prescription and most insurance companies only cover them if surgical abortions are covered in a plan as well.

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