HRA Pharma Doesn’t Have Stock: How to Invest in Opill Maker

Mohit Oberoi, CFA - Author
By

Jul. 12 2022, Published 11:19 a.m. ET

After the U.S. Supreme Court overturned Roe v. Wade, paving the way for states to ban abortions, there has been a flurry of activity. Coincidentally, HRA Pharma has filed with the FDA for the first-ever OTC birth control pill in the country. Does HRA Pharma have stock and can you invest in the company?

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HRA Pharma makes Opill, which is a progestin-only daily birth control pill. The pill is also known as the mini-pill or non-estrogen pill and is available in the U.S. with a prescription. The company has applied to make the pill OTC, which would increase its availability. If approved, Opill would be the first-ever FDA-approved birth control pill in the country.

Plan B is an emergency contraceptive available OTC.

Plan B, which is owned by Foundation Consumer Healthcare, is an emergency contraceptive available OTC. The demand for Plan B spiked after the SCOTUS overturned Roe v. Wade. Plan B doesn't have stock and is owned by private equity companies.

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The demand for the abortion pill Mifeprex, which is made by privately held Danco Labs, has also spiked. The company has maintained a low profile considering the protests from some sections towards abortion pills.

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HRA Pharma doesn't have stock but you can still invest in the company.

HRA Pharma doesn't have stock and isn't publicly traded. It's headquartered in Paris, France, and was founded in 1996. While the company doesn't have stock, you can still invest in HRA Pharma.

HRA Pharma is owned by Perrigo Company, which trades on the NYSE under the ticker symbol “PRGO.” The company is headquartered in Ireland but gets most of its revenues from the U.S. It was founded in 1887 and has been in business for over 130 years now.

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Perrigo stock is trading higher after HRA Pharma files for FDA approval.

Perrigo Company stock is trading higher in U.S. premarket price action on July 12 after HRA Pharma filed for FDA approval. The stock has gained almost 8 percent in 2022 even as the broader markets have plunged. Pharma and defensive stocks have outperformed in 2022. Investors have shunned growth names and have sought solace in value stocks. Perrigo Company also pays a dividend and has a dividend yield of almost 2.5 percent.

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Analysts are bullish on Perrigo's stock forecast.

Only three analysts cover Perrigo and all of them rate the stock as a “buy” or some equivalent. Its average target price of $50.67 is an almost 21 percent premium over the current prices. If the FDA approves HRA Pharma’s application for FDA approval for Opill, it could be a key driver for Perrigo stock. Perrigo stock trades at an NTM (next-12 month) PE multiple of 13.62x, which is higher than the three-year average of 15.24x.

perrigo company plc prgo stock
Source: TIKR
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Many pregnancies in the U.S. are unintended.

HRA Pharma said that almost half of the pregnancies in the U.S. are unintended. While filing for OTC approval with the FDA, the company said, “Moving a safe and effective prescription birth control pill to OTC will help even more women and people access contraception without facing unnecessary barriers."

Opill was approved by the FDA in 1973 and contains 0.075 mg of norgestrel. Commenting on the FDA application to make Opill an OTC pill, obstetrician-gynecologist, Melissa J. Kottke, MD, MPH, MBA, said, “For many, a birth control pill may be the best option for them but requiring a prescription is an unnecessary obstacle that can put it out of reach.”

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