Allergan (NYSE: AGN ) announced today that the Food and Drug Administration issued a complete response letter for Levadex, an inhalable drug that treats migraines. The company had warning of the FDA's concerns -- which focused not on safety issues but on the drug's manufacturing process -- and has worked to address these problems.
What does this new CRL mean for Levadex's future?
Solving through acquisition
An inspection had turned up a quality issue at the Exemplar Pharma-owned facility that filled the Levadex canisters. So Allergan purchased Exemplar for approximately $20 million and installed its own people for better oversight. The CRL expressed problems with the manufacturing of the completed canisters, but Allergan says the company has already responded and awaits the FDA's review.
Best Food Stocks For 2014: McCormick & Company Inc (MKC)
McCormick & Company, Incorporated (McCormick) manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry, retail outlets, food manufacturers and foodservice businesses. The Company�� sales, distribution and production facilities are located in North America and Europe. Additional facilities are based in China, Australia, Mexico, India, Singapore, Central America, Thailand and South Africa. The Company operates in two business segments: consumer and industrial. During the fiscal year ended November 30, 2011, the Company�� consumer business contributed 59% of sales and 79% of operating income and the industrial business contributed 41% of sales and 21% of operating income.
McCormick�� products are sold directly to customers and also through brokers, wholesalers, and distributors. In the consumer segment, products are resold to consumers through a range of retail outlets, including grocery, mass merchandise, warehouse clubs, discount, and drug stores under a range of brands. In the industrial segment, products are used by food and beverage manufacturers as ingredients for their finished goods and by food service customers as ingredients for menu items to enhance the flavor of their foods. Customers for the industrial segment include food manufacturers and the foodservice industry supplied both directly and indirectly through distributors.
The Company�� brands in the Americas include McCormick, Lawry�� and Club House. The Company also markets brands, such as Zatarain��, Thai Kitchen and Simply Asia. In Europe, the Middle East and Africa (EMEA) its brands include the Ducros, Schwartz and Kamis brands of spices, herbs and seasonings and a line of Vahine brand dessert items. In the Asia/Pacific region its primary brand is McCormick, with the exception of India where its joint venture owns and trades under the Kohinoor brand. The Company�� customers span a variety of retail o! utlets that include grocery, mass merchandise, warehouse clubs, discount and drug stores, served directly and indirectly through distributors or wholesalers. In addition to marketing its products to these customers, the Company is also a supplier of private label items, also known as store brands. More than 250 other brands are sold in the United States with additional brands in international markets.
In its industrial business, the Company provides a range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied both directly and indirectly through distributors. Its range of products include seasoning blends, natural spices and herbs, wet flavors, coating systems and compound flavors. In addition to a broad range of flavor solutions, we strive to achieve customer intimacy.Advisors' Opinion:
- [By Portfolio Grader]
This week, McCormick & Co. (NYSE:MKC) pushes up from a B to an A rating. McCormick & Company makes and distributes spices, herbs, seasonings, and specialty foods to the food industry.
Best Food Stocks For 2014: Terra Nitrogen Company L.P.(TNH)
Terra Nitrogen Company, L.P. engages in the production and sale of nitrogen fertilizer products for agricultural and industrial applications. The company primarily offers anhydrous ammonia and urea ammonium nitrate solutions. Its customers for fertilizer products include dealers, national farm retail chains, and distributors. Terra Nitrogen GP Inc. serves as the general partner of the company. Terra Nitrogen Company, L.P. was founded in 1991 and is based in Deerfield, Illinois. Terra Nitrogen Company, LP. operates as a subsidiary of Terra Industries Inc.Advisors' Opinion:
- [By Smith]
Terra Nitrogen is a master-limited partnership (MLP) and a leading U.S. producer of nitrogen fertilizer. The company has annual capacity to produce 1.9 million tons of nitrogen fertilizer and 1.1 million tons of ammonia, a key fertilizer ingredient. In the past year alone, prices for Terra Nitrogen's fertilizers have increased 47%, and sales have dramatically improved. In the first six months of 2011, Terra Nitrogen's sales rose 38% year-over-year to $394.6 million, while earnings climbed a whopping 148% to $249.8 million.
Earnings growth has accelerated recently, but Terra Nitrogen has been a stellar long-term performer as well. My colleague Carla Pasternak, editor of High-Yield Investing, recently highlighted Terra Nitrogen as the best-performing high-yield stock of the past decade. The reason is clear: the stock has soared more than 6,000% in 10 years. A $1,000 investment in Terra Nitrogen 10 years ago, for instance, would be worth nearly $65,000 today.
As an MLP, Terra Nitrogen is required to distribute the majority of its earnings to unit holders. The company declared a cash distribution of $3.75 per unit in this year's second quarter. On a forward basis, this works out to an annual distribution payment of $15 per unit and a generous yield of 8%.
The company is financially sound, with zero debt and a 147% return on equity (ROE). In addition, profit margins have been exceptional, exceeding 52%, mainly because Terra Nitrogen's raw material costs are falling. The main ingredient for producing nitrogen fertilizer, natural gas, has plummeted from $14 per million BTU three years ago to roughly $4 per million BTU today. Insiders also clearly like the company's prospects; they hold 51% of the company's shares.
Hot Restaurant Companies To Invest In Right Now: Nestle SA (NESN.VX)
Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd.