Perrigo

Perrigo Company (NASDAQ: PRGO), (TASE: PRGO) is the largest manufacturer of private label over-the-counter pharmaceuticals in the United States^[2]. The company’s shares are traded on the NASDAQ and the Tel Aviv Stock Exchange; as a result of the merger with Agis Industries the company is a constituent of the TA-25 Index.

Perrigo Company, through its wholly owned subsidiaries, engages in the manufacture and sale of consumer healthcare products, generic prescription drugs, active pharmaceutical ingredients (API), and consumer products primarily in the United States, Australia, Israel, Europe, India and Mexico.

History

Early Years

The L. Perrigo Company was founded in 1887 in Allegan, Michigan, by Luther and Charles Perrigo. The Perrigo brothers had moved to Allegan County, Michigan, a few years earlier from New York. Once in Michigan the brothers established a modest business. Luther Perrigo ran a country general store and apple drying business, while Charles helped with sales. Luther decided to package generic home remedies and sell them to other small country stores like his own. The first packaging plant for these medicines was run out of Charles Perrigo's home, but Charles soon moved to Ohio, leaving the business entirely to his brother. Luther became president of the firm when it incorporated in 1892. Perrigo remained a family-owned business for 90 years. Five of the company's seven presidents were descendants of Luther Perrigo, who died in 1902. His son Harry became president at that time, holding the position for the next 49 years.^[3]

In 1991 Perrigo had an Initial public offering on NASDAQ.

Merger with Agis Industries

In March 2005 Perrigo merged with Agis Industries Ltd. (TASE:AGIS), an Israel based generic pharmaceuticals company in an $850 million transaction. Agis Industries was founded in 1983 by Moshe (Mori) Arkin who, following his father’s early death took over his small drug import business at the age of 19 years and grow it into a multinational generic pharmaceutical company. As a result of the merger Arkin owns 9% of Perrigo, he was also appointed as Vice Chairman of the company.^[4]

Recent Growth

Acquisitions

• On 9 January 2008, the Perrigo Company acquired Galpharm Healthcare, Ltd. for approximately $86 million in a cash transaction. Based in Barnsley, Yorkshire, United Kingdom, privately-held Galpharm is a leading supplier of over-the-counter store brand pharmaceuticals sold in the United Kingdom. The acquisition is expected to add approximately $55 million in sales annually.^[5]

• On 16 September 2008, the Perrigo Company acquired J.B. Laboratories for approximately $44 million in a cash transaction. The acquisition is expected to add $70 million in sales annually for the Perrigo Company.^[6]

• On 6 October 2008, the Perrigo Company acquired Laboratorios Diba S.A. for approximately $25 million in a cash transaction. The acquisition is expected to add $15 million yearly in sales for the Perrigo Company. The acquisition will also provide the company availability to market 150 formulas and 50 trademarks in the Mexican market.^[7]

• On 13 November 2008, the Perrigo Company acquired Unico Holdings for approximately $49 million in cash. Based in Lake Worth, Florida, privately-held Unico is the leading manufacturer of store brand pediatric electrolytes, enemas and feminine hygiene products for retail consumers in the U.S. The acquisition is expected to add nearly $50 million to annual sales.^[8]

• On 1 March 2010, the Perrigo Company acquired Orion Laboratories Pty, Ltd. for approximately $48 million in cash. Based in Perth, Western Australia, privately-held Orion is a leading supplier of over-the-counter (OTC) store brand pharmaceutical products in Australia and New Zealand. In addition, the company manufactures and distributes pharmaceutical products supplied to hospitals in Australia. The acquisition is expected to add more than $30 million in sales annually and be accretive to earnings in the first year.^[9]

• On 23 March 2010, the Perrigo Company acquired PBM Holdings, Inc. for approximately $808 million in cash. Based in Gordonsville, Virginia, privately-held PBM manufactures and distributes over-the-counter (OTC) store brand infant formula and baby foods sold by leading retailers in the mass, club, grocery and drug channels in the United States, Canada, Mexico and China. The transaction is expected to add approximately $300 million in annual sales. Approximately 20% of these sales are international, as PBM has placed increasing focus on the growing demand for quality infant nutrition products outside of the US.^[10]

• On 20 January 2011, the Perrigo Company acquired Paddock Laboratories Inc. for approximately $540 million in cash. The transaction is expected to add more than $200 million in annual sales with over 35 products and a strong product pipeline with more than 25 ANDAs pending approval with the U.S. Food and Drug Administration. Perrigo expects the deal to close in fiscal 2012.^[11]

Segments

The company operates in three segments; Consumer Healthcare, Rx Pharmaceuticals, and Active Pharmaceutical Ingredients. The Consumer Healthcare segment offers over-the-counter pharmaceutical and nutritional products in the United States, the United Kingdom, and Mexico. This segment offers analgesic, cough/cold/allergy/sinus, gastrointestinal, smoking cessation, first aid, antacids, hemorrhoidal remedies, motion sickness, sleep aid products, feminine hygiene products, vitamin, and nutritional supplement products.

The Rx Pharmaceuticals segment engages in the development, manufacture, and sale of generic prescription drug products in the United States. This segment provides creams, ointments, lotions, gels, and solutions, as well as nasal sprays, foams, and transdermal devices.

The Active Pharmaceutical Ingredients segment supports the development and manufacturing of API products in Israel with sales to customers worldwide. The company also offers cosmetics, toiletries, detergents, manufactured and imported pharmaceutical products, and medical diagnostic products. The company’s customers include national and regional retail drug, supermarket, wholesalers, and mass merchandise chains.

Management

Key executives include David T. Gibbons (Executive Chairman), Joseph C. Papa (Chief Executive Officer and President) and Moshe Arkin (Vice Chairman, Vice Chairman of Perrigo Global Generics, Vice Chairman of API, General Manager of Perrigo Global Generics, and General Manager of API).

Awards

101 Best and Brightest Companies to Work For of West Michigan awarded Perrigo overall “Best of the Best” for 2009.^[12]

In 2010 Perrigo was named one of the top 100 Fastest-Growing Companies by Fortune Magazine.^[13].

References

External links

• Perrigo's Corporate Website