Perrigo Company plc · NYSE:PRGO
Perrigo — Merrill Lynch presentation (June 2008)
27 slides from Perrigo's conference presentation, Jun 20, 2008
Slide 1: Welcome to Consumer Health Care Business Overview
Welcome to Consumer Health Care Business Overview June 20, 2008 1
Slide 2: Market Overview
Market Overview Perrigo Markets Annual Retail Sales Store Brand Share Perrigo SB Share* (Big 4 Categories) ($B) OTC $19.3 21.6% 75% Nutrition $4.7 25.6% 30% Total $24.0 22.5% 63% 22
Slide 3: Perrigo's Top U.S. Customers
Perrigo’s Top U.S. Customers AHOLD MCKESSON ALBERTSONS MEIJER AMERISOURCE BERGEN PUBLIX SUPER MARKETS COSTCO RITE AID CVS SAFEWAY STORES DOLLAR GENERAL SAM'S CLUB H.E. BUTT SUPER VALU SEARS HOLDING TOPCO KROGER WAL MART LONGS WALGREEN 33
Slide 4: Store Brand Category Trends - Dollar Growth
Store Brand Category Trends - Dollar Growth 14.2 10.9 6.9 5.1 0.4 Analgesics CCAS GI NRT Nutrition 44
Slide 5: Basics of the Store Brand OTC Business
Basics of the Store Brand OTC Business 55
Slide 6: Magic of Store Brands
Magic of Store Brands Store Brands provide consumer value while driving retailer profitability National Store Brand Brand Consumer Price $10.00 $7.00 Retail Cost 7.50 3.00 Retail Profit $2.50 $4.00 % Profit 25% 57% Consumer Savings 30% 66
Slide 7: Role of Store Brand
Role of Store Brand • Offer Consumers a High Quality, Value Alternative They Feel Good About Buying • Generate More Profit -- Penny & Percentage -- for Retailer Than the National Brand Alternative • Build Brand Identity by Presenting Proprietary Products Only Available at Retailer’s) Stores 77
Slide 8: Store Brands Drive Retailer Profit
Store Brands Drive Retailer Profit Contribution of Store Brand to a Retailer’s Total Category Sales ($) Vol (Units) Profit ($) 90 80 70 60 50 40 30 20 10 0 Analgesics Cough/Cold Vitamins NRT 788
Slide 9: What does National Brand Equivalent mean?
What does National Brand Equivalent mean? Vicks® Nyquil® Softgels Perrigo NiteTime Softgels • Same active ingredients • Comparable product attributes • Packaging that invites comparison 99
Slide 10: Why retailers prefer Perrigo
Why retailers prefer Perrigo • Product quality • Broad product line • Store band expertise – R&D – Regulatory – Quality/Compliance – Supply chain • Multiple formulas, packaging configurations, customer labels, conversions – Marketing (displays, pharmacy marketing, in-store advertising, package desig
Slide 11: Store Brand Consumer Healthcare
Store Brand Consumer Healthcare 22) PEAHAIGD LE PEAHIGO,
Slide 12: Store Brand Operational Complexity
Store Brand Operational Complexity • Customers/labels • Multiple sizes • Case packs • Promotions 12 12
Slide 13: How 1 product becomes 476
How 1 product becomes 476 • 51 customers • 10 sizes – 20, 24, 50, 65, 100, 120, 165, 250, 500, 750 Ibuprofen Tab Example • 45 promotional configurations – Twin packs – Bonus sizes – Displays • Clear mini merchandiser • Counter unit • Corrugate mini merchandiser • Dump bin • End cap • Half pallet • F
Slide 14: Multiple Customers
Ibuprofen Tablets 200 mg PAIN RELIEVER / FEVER REDUCER (NSAID) wanes Cquale. Ibuprofen Tablets, 200mg Ibuprofen Tablets, 200mg wocarsexe0478 ibuprofen tablets 200 mg | IBUPROFEN, Szenscscncrrmam ‘acces TABLETS 200 mg ? 250 COATED TABLETS Ibuprofen Tablets 200mg en ernest
Slide 15: Multiple Sizes
PERAIGD Multiple Sizes 2 —E We 41280-80671 |==3 meljer | Ibuprofen 22283 eel molier iii :| Ibuprofen iby wofen a? - i ie 7 = : — mate rs uprofen & =p Say! PouaeTs ED: ity! meijer |) 7 Ibuprofen | ll 500 TABLETS + 15
Slide 16: Promotional Configurations
Promotional Configurations 16
Slide 17: What Correlates Best with Store Brand Share?
What Correlates Best with Store Brand Share? • The battle is won or lost at the shelf – Distribution – Facings – Package Design 17 17
Slide 18: Power of Perrigo—The Cetirizine Launch
Power of Perrigo— The Cetirizine Launch Bonus & Economy Sizes Brand Promotion Drives Store Brand Awareness Pharmacy Introduction Kits On-shelf signage Print Ads Off-shelf Displays 18 18
Slide 19: Volume Share
Store Brand Cetirizine 10MG Volume Share - FDMx 50% 45% 43.1% 40.0% 40% 37.6% 35.9% 34.7% 34.5% Volume Share 35% 33.0% 31.5% 29.0% 30% 27.3% 25.8% 26.1% 25% 23.7% 20% 15% 10.8% 10% 6.7% 4.7% 5% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Launch Weeks 19 19 Source: IRI Weekly Data Ending 5/11/08; FDMx
Slide 20: Power of Perrigo – The Omeprazole Launch
Power of Perrigo – The Omeprazole Launch 2020
Slide 21: Volume Share
Perrigo Store Brand Omeprazole Volume Share - FDMx 40% 35% 30% 28.40% 27.4% Volume Share 26.4% 26.60% 25% 24.3% 23.8% 21.6% 20% 17.3% 15% 13.7% 10% 5% 2.9% 0% 1 2 3 4 5 6 7 8 9 10 21 21 Launch Weeks Source: IRI Weekly Data Ending 5/11/08; FDMx
Slide 22: OTC Proven Performance
OTC PROVEN PERFORMANCE Oral Dose Nicotine Replacement Therapy 100% 100 80 COMP 65% 55% 60 45% COMP 35% 40 PRGO 20 COMP PRGO 0% 0 PRGO Q4'04 Q1'06 Q3'08 After PRGO Includes PRGO launch of launch of coated gum & lozenge 22 uncoated (currently exclusive) 22 gum
Slide 23: The Essential Elements of a Store Brand Health Care Program
The Essential Elements of a Store Brand Health Care Program • Know your consumer – through research with your shopper • Communicate a consistent statement and message for your store brand • - “Value” – “Trust” - “Quality” - connected to the store’s positioning • Develop and execute an annual store b
Slide 24: Perrigo's Global Capabilities
Perrigo’s Global Capabilities • 34+ Billion Tablets Each Year • 3 Billion Liquid Doses Each Year Every second of every day 1,000 people take a Perrigo product 24 24
Slide 25: Perrigo is the Clear Leader in Rx to OTC Switch
Perrigo is the Clear Leader in Rx to OTC Switch • 61 approvals over the past 30 years Other • Switch Experts: more ANDAs than any OTC Perrigo Participates in 70% of Market company Nearly $10B potential Rx switches in the next 5 years 25 25
Slide 26: Wal-Mart $4 Rollback Program
Wal-Mart $4 Rollback Program • World’s largest retailer promoting OTC Store Brand • Focus on quality, affordable healthcare • Expectations for increased volume • Similar to Generic Rx program 26 26
Slide 27: 2009 and Beyond - CHC Growth Drivers
2009 and Beyond - CHC Growth Drivers Rx to OTC $10 billion Next 5 Years $90 million Famotidine Complete ? Economy / $4.00 Wal-Mart Competitive Takeaway Vitamins / Nutrition $750 million Brand Prilosec OTC Galpharm $60m Revenue/European Expansion $100 million Competitive Takeaway $150 million Brand N
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