Perrigo Reports Record Second Quarter Earnings

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November 2, 2010

Perrigo Company reported record earnings of $74 million, up 44 percent for its first quarter ended Sept 25, 2010 versus the same period a year ago. Net sales from continuing operations for the first quarter were $641 million, an increase of 21 percent

“The market for store brands continues to grow, now representing approximately 29 percent of over-the-counter (OTC) and nutritional sales dollars at retail and up 400 basis points in the past two years,” said Joseph C. Papa chairman and CEO of Perrigo. “Our [prescription] segment continued its strong performance, which was driven by new product sales and growth in over-the-counter and Rx combined with our continued focus on quality and R&D. Our value proposition continues to resonate well with consumers in all economic conditions."

In the consumer healthcare segment net sales in the first quarter were $396 million compared with $381 million in the first quarter last year, an increase of $15 million or 4 percent.

The nutritionals segment, which consists of infant formulas, infant and toddler foods, vitamins, minerals and supplements, as well as oral electrolyte solutions, reported first quarter net sales of $123 million, compared with $56 million a year ago. The increase in sales was primarily the result of the acquisition of PBM Products, the company said in a statement.

The prescription pharmaceuticals segment first quarter net sales were $69 million compared with $47 million a year ago, an increase of 47 percent. The increase in sales was driven by new product sales, primarily as a result of the company obtaining the generic distribution rights to Aldara, as well as by higher volumes on existing products.The company’s chairman and CEO said the store brands market continues to grow, now representing approximately 29 percent of over-the-counter and nutritional sales dollars at retail.

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