Perrigo Financial Analysis

Company Overview

Perrigo is the world’s leading manufacturer and distributor of store brand over-the-counter (OTC) medicines and generic prescription pharmaceuticals. Their mission is to “provide quality, affordable, healthcare products.” Perrigo employs over 7,700 people in more than seven countries with their headquarters in Allegan, Michigan. Their product portfolio is split into four divisions: Consumer Health Care, Prescription Pharmaceuticals, Active Pharmaceutical Ingredients (API) and Consumer Pharmaceutical and Medical Diagnostic Products.

The Consumer Health Care division operates in the U.S., U.K. Australia and Mexico. Their focus is store brand OTC pharmaceuticals, infant formula and nutritional products. Products they manufacture and distribute are comparable to Tylenol®, Advil®, Aleve® and One-A-Day®. The tablet packaging facility in Allegan bottles several billion tablets annually.

Perrigo’s prescription pharmaceutical division is focused on the development, manufacturing and sale of generic prescription medicines. Operations are located in Israel and the U.S. Perrigo markets about 300 generic prescription products to approximately 120 customers.

The API operations are located in India, China and Eurpoe. Raw materials are not only used in Perrigo products, they are also distributed to other pharmaceutical companies worldwide. The API segment relies heavily on regulatory compliance to remain relevant. For this reason, Perrigo continues to remain diligent in the areas of quality assurance, regulatory compliance and quality control as part of its strategic position.

The Israeli market is served by the Consumer Pharmaceutical and Medical Diagnostic division of Perrigo. Household products such as toiletries, bar soaps, detergents, and cosmetics are distributed under Israeli brand names. Perrigo committed to a plan to sell its Israel Consumer Products business in 2010 and is working to complete the sale of this division....