Perrigo Company plc · NYSE:PRGO
Perrigo — Citi Global Healthcare Conference 2010
28 slides from Perrigo's conference presentation, May 26, 2010
Slide 1: Citi Global Healthcare Conference
Citi Global Healthcare Conference New York, NY May 26, 2010 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 $2,400 • Top line growth fueled by $2,007 both organic and $2,000 inorganic activities $1,730 $1650 in USD millions $1499 YTD’10 • FY’10 expected revenue $1,600 $1,368 YTD’09 growth of 12%-13% $1,294 $1,200 $1,007 YTD FY10 revenue +10% $80
Slide 4: Multi-Business Portfolio
Multi-Business Portfolio Revenue Contribution by Segment Revenue by Country 3% 7% 9% 3% 8% 6% 3% 82% 79% Consumer Healthcare Rx API PDI US Israel UK Mexico ROW Fiscal Year 2009 Revenues >$2 Billion 4 Quality, Affordable Healthcare Products
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 $1.6 Billion and over 9,400 SKU’s Revenue QUARTERLY PERFORMANCE KEY GROWTH DRIVERS ($ Mill) • Leader Rx to OTC switches $500 • 15 ANDA’s in pipeline $450 $400 • Polyethylene Glycol $350 • Miconazole –awaiting FY'06 $300 FY'07 approval FY'08 $250 FY'09 • Recen
Slide 7: Consumer Healthcare Market & Share Growth
Consumer Healthcare Market & Share Growth 2009 2009 1990 1990 Averaged one percentage point market 25% 10% share increase per year 75% 90% National Brand Store Brand National Brand Store Brand 2008 Total OTC Sales Value at Retail ~ $23 Billion Source: IRI and Perrigo Company Estimates 7 Quality, Aff
Slide 8: PBM Acquisition
PBM Acquisition • Headquartered in Gordonsville, Virginia with manufacturing operations in Vermont and Ohio • #1 provider of retailer-branded infant formula in the U.S. • One of only four manufacturers with active FDA approvals for infant formula products Global pediatric nutrition industry sales ($
Slide 9: 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 $29.49 20% % Profit 56% Consumer Savings 26% Big Dollar Profit for Retailers 9 Quality, Affordable Healthcare Products
Slide 10: Store Brands Drive Retailer Profit
Store Brands Drive Retailer Profit Contribution of Store Brand to a Retailer’s Total Category Sales ($) Vol (Units) Profit ($) 90 80 70 60 Percent 50 40 30 20 10 0 Analgesics Cough/Cold Vitamins Smoking Cessation 10 Quality, Affordable Healthcare Products
Slide 11: Magic of Store Brands
Magic of Store Brands Perrigo has saved consumers >$10 billion during the last 15 years Savings to the Consumer $1,600 $1,400 $1,200 $1,000 in USD millions $800 $600 $400 $200 $0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 11 Quality, Affordable Healthcare Product
Slide 12: 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% 12 Source: “Store Brands and the Recession: What Happens When the Recovery Kicks In?”, PLMA Summer 2009 Quality, Affordable Healthcare Products
Slide 13: New Products Drive Growth
New Products Drive Growth 13 Quality, Affordable Healthcare Products
Slide 14: Omeprazole: How to Successfully Gain Share Against an Established Brand
Omeprazole: How to Successfully Gain Share Against an Established Brand Background – • Prilosec OTC® was an established brand selling $750M annually – 2003: Goes over the counter, with marketing by Procter & Gamble – 2004: #1 OTC Heartburn Medicine – 2005: #1 Recommended doctor recommended acid redu
Slide 15: Perrigo Omeprazole: A >$325M Retail Brand
Perrigo Omeprazole: A >$325M Retail Brand Perrigo Store Brand Omeprazole Volume Share - FDMx 50% 46% 44% 41%40%41%40% 42%43% 42% 39%40% 40%39%41% 38%38% 40% 36%35%36% 37% 37% 35% 34% 31% 31% Volume Share 30% 28% 22% 20% 10% 4% 0% Launch Weeks 4 Weeks Ending Source: IRI 4 Week Data Ending 4/11/10; FD
Slide 16: 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 16 Quality, Affordable Healthca
Slide 17: 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%58%60%61%60% 60% 53%52% 56%55%55% 54% 54% 53% 51% 49%50% 50% 50% 46%47%48%48% 44%43% 43% Volume Share 38%39% 40% 36% 30% 27% 20% 13% 10% 0% 4 Weeks Ending Launch Weeks Sourc
Slide 18: Polyethylene Glycol 3350 (MiraLax)
Polyethylene Glycol 3350 (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 <10% 35% Store Brand Volume Share - FDMx 29.3% 30% 27.0% 24.7% 24.5% 24.7% 25% 21.
Slide 19: All Category Update
All Category Update 52 Weeks Store Brand National Brand Category 11.2% Total OTC & Nutrition 1.3% 4.1% 11.9% Total OTC -2.8% 1.0% 11.0% Analgesics -2.7% 0.8% 6.8% Cough, Cold, Allergy, Sinus -7.3% -4.1% 17.9% Gastrointestinal 0.2% 4.6% 5.9% Smoking Cessation -5.8% -0.5% 12.3% Nutrition 11.3% 11.6% -
Slide 20: Store Brands Gain Share Points After Tylenol Tablet Recall
Store Brands Gain 10 Share Points After Tylenol Tablet Recall Store Brand APAP Share Growth in FDMx - Volume Share +9.7 share points 47.9% 38.2% Ave Share Prior to Tylenol Recall Ave Share Since Tylenol Recall 20 Source: IRI FDMx, through Week Ending April 11, 2010 Quality, Affordable Healthcare Pro
Slide 21: Best In Class Retail Marketing: Retailers Promoting Store Brand
Best In Class Retail Marketing: Retailers Promoting Store Brand CVS Walgreens Kroger Wal-Mart 21 Quality, Affordable Healthcare Products
Slide 22: 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 – $200 clinical endpoints $161 $164 $160 • FY’09 Sales of $164 million $138 $38 $49 • Key new products $121 $154 $120 $44 - Nasacort approval $33 - Generic Evoc
Slide 23: Generic OTCs Drive 'ORx'
Generic OTCs Drive ‘ORx’ Rx-to-OTC Market Landscape Doctors continue to trust and prescribe Rx-to-OTC products post switch Various Health Plans and programs see the cost saving and other benefits OTCs provide its members Perrigo’s ORx Strategy Set-up and register generic OTCs for reimbursement throu
Slide 24: Active Pharmaceutical Ingredients
Active Pharmaceutical Ingredients QUARTERLY PERFORMANCE • One of the world’s largest API Rev. (Millions) businesses $40 • Recent investment into India • Selling to Pharma companies in $35 more than 25 countries $30 • FY’09 Sales of $136 million FY'06 $25 FY'07 • Focus on complex, differentiated $20
Slide 25: Continually Increasing Our Investment in R&D
Continually Increasing Our Investment in R&D Leading Indicator = Growth $85 Millions $65 $45 $25 2004 2005 2006 2007 2008 2009 25 Quality, Affordable Healthcare Products
Slide 26: FDA Warning Letter
FDA Warning Letter Timeline • January 14, 2010 – The FDA completes routine annual inspection at Perrigo • January 14, 2010 – Perrigo receives a Form 483 (eight observations) and responds on February 1 • April 30, 2010 – Perrigo receives a Warning Letter and submits a written response on May 19 Prima
Slide 27: 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 27 Quality, Affordable Healthcare Products
Slide 28: Perrigo Uniquely Positioned
Perrigo Uniquely Positioned • Critical Mass in the industry – 44+ billion tablets/caplets per year • Mass customization – 12,000+ SKUs • Focus on Generic Rx topicals with significant barriers to entry • Low cost manufacturing • API business provides vertical integration potential and critical purcha
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