Perrigo Company plc · NYSE:PRGO
Perrigo — Non-Deal Roadshow (January 2011)
23 slides from Perrigo's roadshow presentation, Jan 4, 2011
Slide 1: BofA Merrill Lynch Investor Meetings
BofA Merrill Lynch Investor Meetings January 4, 2011 Quality, Affordable Healthcare Products
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future
Slide 3: Perrigo Financial Performance - From Continuing Operations
Perrigo Financial Performance - From Continuing Operations $2,500 $500 Fiscal 2011 Expectations $2,269 • 20%-23% consolidated $2,007 revenue growth $2,000 $400 in USD millions $1,730 • 12%-18% Adj. EPS growth from Cont. Ops $1,500 $1,368 $300 $1,294 • Over 50 new products $1,007 • $180M+ in new prod
Slide 4: Perrigo Uniquely Positioned
Perrigo Uniquely Positioned • Critical Mass in the industry – 44+ billion tablets/caplets per year • Mass customization – 13,000+ SKUs • Focus on Generic Rx topicals with significant barriers to entry • Low cost manufacturing • API business provides vertical integration potential and critical purcha
Slide 5: Broad Manufacturing Scale
Broad Manufacturing Scale Facilities Solid dose Liquids Semi-Solids API 11 Plants North 39 Billion Tablets 235 Million Units America 80 Million Units 2 Plants Europe 4 Billion Tablets 65 Million Units 4 Plants Middle/ 1 Billion Tablets 10 Million Units 10 Million Units 3.6 tons Far East Total: 44 Bi
Slide 6: Consumer Healthcare
Consumer Healthcare Global Sales of over $1.8 Billion and over 12,000 SKU’s Revenue QUARTERLY PERFORMANCE KEY GROWTH DRIVERS ($ Mill) • Leader Rx to OTC switches $500 • 15 ANDA’s in pipeline $450 $400 • Accelerating use of storebrands $350 $300 FY'06 FY'07 • Continued growth of $250 FY'08 Polyethyle
Slide 7: The Magic of Store Brands…Even More Magical
The Magic of Store Brands…Even More Magical Given Our Newer OTC Products… $57.27 Cost $23.50 $71.59 Retail Price $52.99 $14.32 $ Profit $29.49 20% % Profit 56% Consumer Savings 26% Big Dollar Profit for Retailers 7 Quality, Affordable Healthcare Products
Slide 8: Store Brands Drive Retailer Profit
Store Brands Drive Retailer Profit Contribution of Store Brand to a Retailer’s Total Category Sales ($) Vol (Units) Profit ($) 90 80 70 60 Percent 50 40 30 20 10 0 Analgesics Cough/Cold Vitamins Smoking Cessation 8 Quality, Affordable Healthcare Products
Slide 9: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 12.2% Total OTC & Vitamins (*VMS) -1.9% 1.7% 12.1% Total OTC -4.4% -0.1% 24.0% Analgesics -14.0% -4.0% 9.0% Cough, Cold, Allergy, Sinus -6.3% -2.7% 13.5% Gastrointestinal 3.9% 6.5% 11.1% Smoking Cessation -10.6% -0.5% 12.5% Vitamins
Slide 10: Store Brand Acceptance
Store Brand Acceptance What Shoppers Will Do When the Recession Ends Shoppers Who Will Keep Buying Store Brands 91% All Other Shoppers 9% 10 Source: “Store Brands and the Recession: What Happens When the Recovery Kicks In?”, PLMA Summer 2009 Quality, Affordable Healthcare Products
Slide 11: Power of Perrigo—The Cetirizine Launch
Power of Perrigo—The Cetirizine Launch On-shelf Bonus & Economy signage With over 7 OTC approvals, Sizes Pharmacy Perrigo has 80% Store Introduction Kits Brand Market Share Brand Promotion Drives Store Brand Awareness 20% 80% Print Ads Perrigo Other Off-shelf Displays 11 Quality, Affordable Healthca
Slide 12: Store Brand Cetirizine is a $150M Retail Business
Store Brand Cetirizine is a $150M Retail Business, Outselling the Brand Store Brand Cetirizine 10MG Volume Share - FDMx 70% 59% 59% 60% 55% 53% 57% 51% 52% 53% 51% 48% 50% 46% 47% 47% 42% Volume Share 39% 40% 36% 31% 30% 22% 20% 13% 10% 0% 12 Weeks Ending Launch Weeks Source: IRI 12 Week Data Ending
Slide 13: Perrigo Omeprazole: A >$325M Retail Brand
Perrigo Omeprazole: A >$325M Retail Brand Perrigo Store Brand Omeprazole Volume Share - FDMx 50% 44% 43% 44% 44% 43% 40% 41% 41% 42% 40% 40% 35% 31% 33% 34% 29% Volume Share 30% 28% 20% 16% 10% 7% 0% Launch Weeks 12 Weeks Ending Source: IRI 12 Week Data Ending October 24, 2010; FDM 13 Quality, Affor
Slide 14: Store Brand MiraLax
Store Brand MiraLax® • Leveraging our best-in-class marketing capabilities, Perrigo has been able to secure >90% of the store brand market With 5 OTC approvals, Perrigo has >90% Store Brand Market Share 45% Store Brand Volume Share - FDMx <10% 42% 40% 38% 38% 38% 35% 30% 30% 30% 30% 27% 27% 25% 25%
Slide 15: New Product Innovation - (publicly disclosed products)
New Product Innovation - (publicly disclosed products) Q3 FY2008 Q1 FY2009 Cetirizine & Famotidine Q3 FY2009 Omeprazole Complete FY2010 FY2011 Pipeline Ibuprofen PM Polyethylene Generic version of Allegra Glycol 3350 Generic version of Zantac 150 $5 Billion in potential branded sales with new SB AND
Slide 16: Infant Formula Acquisition
Infant Formula Acquisition • Headquartered in Gordonsville, Virginia with manufacturing operations in Vermont and Ohio • #1 provider of retailer-branded infant formula in the U.S. • One of only four manufacturers with active FDA approvals for infant formula products Global pediatric nutrition indust
Slide 17: Generic Rx Business – Leader of the generic topical market
Generic Rx Business – Leader of the generic topical market Rev. FINANCIAL PERFORMANCE KEY GROWTH DRIVERS (Millions) • High barrier to entry – clinical $250 $238 endpoints • FY’10 Sales of $238 million $200 • Key new products $161 $164 • Generic Nasacort®, 2011 $150 $138 launch $121 • Generic Evoclin
Slide 18: Generic OTCs Drive 'ORx'
Generic OTCs Drive ‘ORx’ Rx-to-OTC Market Landscape Physicians continue to trust and prescribe Rx-to-OTC products post switch Managed care programs are recognizing the cost saving opportunities with OTC pharmaceuticals Perrigo’s ORx Strategy Set-up and register generic OTCs for reimbursement t
Slide 19: Rx New Product Innovation - (publicly disclosed products)
Rx New Product Innovation - (publicly disclosed products) Q3 FY2010 Ichthammol Ointment Q4 FY2010 FY2011 Aldara® Mesalamine Enema Kit Analpram E® Cream AG Triamcinolone nasal Cream, 5% AG spray Ciclopirox Shampoo 1% Clindamycin Foam 1% Analpram Levocetirizine HC® Cream Adapalene Cream, 0.1% HalfLyte
Slide 20: Active Pharmaceutical Ingredients
Active Pharmaceutical Ingredients QUARTERLY PERFORMANCE • One of the world’s largest API businesses Rev. (Millions) • Continued development of India investment $40 • Selling to Pharma companies in $35 more than 25 countries $30 • FY’10 Sales of $139 million FY'06 $25 FY'07 • Focus on complex, differ
Slide 21: Continually Increasing Our Investment in R&D
Continually Increasing Our Investment in R&D $100 Leading Indicator = Growth $80 $60 Millions $40 $20 $0 2004 2005 2006 2007 2008 2009 2010 21 Quality, Affordable Healthcare Products
Slide 22: Perrigo FY11 Revised Guidance - From Continuing Operations
Perrigo FY11 Revised Guidance - From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Adj. Consolidated Gross Margin 34% to 35% from Fiscal 2010 Adj. Consolidated Operating Margin 18% to 19% of Net Sales Adjusted Diluted EPS $3.60 to $3.75 (19% to 24% Y/Y Growth*) Cash F
Slide 23: Perrigo – Well Positioned to Drive Growth
Perrigo – Well Positioned to Drive Growth ORx Acquisitions Allergy season Expanded generic RX portfolio Vertical API integration ANDA / New Product Pipeline Consumers Continued switch to Store Brands Perrigo’s Strong Foundation 23 Quality, Affordable Healthcare Products