Perrigo Company plc · NYSE:PRGO
Perrigo — Goldman Sachs Healthcare Conference 2011
29 slides from Perrigo's conference presentation, Jun 8, 2011
Slide 1: Goldman Sachs Healthcare Conference
Goldman Sachs Healthcare Conference Rancho Palos Verdes, CA June 8 and 9, 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: A Diversified, Integrated, Healthcare Company
A Diversified, Integrated, Healthcare Company Global Capabilities Quality & Compliance, R&D, Manufacturing, Legal, Regulatory, IT 3 Quality, Affordable Healthcare Products
Slide 4: Perrigo Financial Performance
Perrigo Financial Performance Revenue, Cash Flow & Adjusted Operating 3 Year in millions Revenue Margin $2,272 $2,400 18.0% $400 CAGR of 18% $2,006 $350 $2,000 14.6% $1,727 13.8% $300 3 Year Adj. $1,600 $1,368 $250 Income from 9.0% $1,200 $200 Cont. Ops. $150 CAGR of 47% $800 $100 $400 3 Year $50 Op
Slide 5: Focused on Both Organic and Inorganic Growth
Focused on Both Organic and Inorganic Growth* Starting with Fiscal 2005 as the base year Organic & Inorganic Sales in millions $2,500 $2,000 $788 $622 $515 $1,500 $364 $408 $117 $1,484 $1,000 $1,213 $1,383 $500 $913 $921 $960 $0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Organic Inorganic 5 Y
Slide 6: 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 7: Consumer Healthcare Segment
Consumer Healthcare Segment The Leader in Rx to OTC switches Annual Revenue & Adj. Operating Margin in millions $2,000 7%-9% over 25% 19.7% FY2010 $1,600 17.8% 20% 16.0% $1,200 15% 7.6% $800 $1,574 10% $1,413 YTD '11 $1,169 $1,251 $400 $880 5% $0 0% FY2007 FY2008 FY2009 FY2010 FY2011E Annual Revenue
Slide 8: The Magic of Store Brands
The Magic of Store Brands… $57.27 Cost $23.50 $71.59 Retail Price $52.99 $14.32 $ Profit $29.49 20% % Profit 56% Consumer Savings 26% Big Dollar Profits and Margin for Retailers Reason for large investments by retailers in their store brands 8 Quality, Affordable Healthcare Products
Slide 9: Store Brands Drive Retailer Profit
Store Brands Drive Retailer Profit Contribution of Store Brand to a Retailer’s Total Category 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Analgesics Cough/Cold Vitamins Smoking Cessation Sales ($) Vol (Units) Profit ($) 9 Quality, Affordable Healthcare Products
Slide 10: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 13.3% Total OTC & Vitamins (*VMS) -1.7% 2.4% 14.8% Total OTC -3.6% 1.4% 31.5% Analgesics -15.3% -2.2% 13.6% Cough, Cold, Allergy, Sinus -3.5% 0.8% 11.1% Gastrointestinal 1.8% 4.4% 9.8% Smoking Cessation -7.1% 1.2% 7.1% Vitamins (*VMS
Slide 11: Strategic Focus on Rx-to-OTC Switches
Strategic Focus on Rx-to-OTC Switches We continue to invest in the future of store brand growth through our focus on potential Rx-to-OTC switch opportunities. More ANDAs Than Any Other OTC Company 72 29 21 24 15 Novartis Pfizer Schering J&J Perrigo 11 Quality, Affordable Healthcare Products
Slide 12: Power of Perrigo – New Product Launches
Power of Perrigo – New Product Launches Cetirizine Omeprazole Store Brand MiraLax® With 5 OTC approvals, Perrigo has >90% Store Brand Market With over 7 OTC approvals, Share Perrigo has 80% Store Brand Market Share <10% 20% 90% 80% Perrigo Other 12 Perrigo Other Quality, Affordable Healthcare Produc
Slide 13: Store Brand Penetration – First Year of Product Launch
Store Brand Penetration – First Year of Product Launch 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 Cetirizine Omeprazole SB MiraLax® Store brand Cetirizine increased to 48% penetration Store brand Omeprazole increased to 40% penetration Store brand MiraLax® increased to 42% penetration 1
Slide 14: Fexofenadine Launch Program
Fexofenadine Launch Program At-Launch Web Banners At-Shelf Direct-to- Messaging Consumer Marketing Off-Shelf In-Season Displays Programs Pharmacy Marketing 14 Quality, Affordable Healthcare Products
Slide 15: New Product Innovation
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 Generic vers
Slide 16: Store Brand Allegra – The Switch From Rx to OTC
Store Brand Allegra® - The Switch From Rx to OTC Every major NSA switch ® The switch of Allegra from Rx to OTC we expect increased the OTC will increase the size of the category while having Allergy market over 50%! minimal impact to other NSA products $2,500 Millions OTC $$ Market $2,000 Cetirizine
Slide 17: Managing Complexity – A Perrigo Competitive Advantage
Managing Complexity – A Perrigo Competitive Advantage Ibuprofen Example 1 Advil® SKU becomes 476 unique Perrigo Ibuprofen tablet items 51 customers 17 case pack combinations 10 sizes 20, 24, 50, 65, 100, 120… 45 promotional configurations 17 Quality, Affordable Healthcare Products
Slide 18: Beyond FY 2011 – OTC Future Product Pipeline
Beyond FY 2011 – OTC Future Product Pipeline Brand Potential Switch Brand Future Pipeline Sales ($B) Products/Categories Sales ($B) Nexium ® Esomeprazole (Rx) $ 8.5 Statins $ 17.0 Protonix ® Pantoprazole (Rx) 3.2 Singulair ® 4.8 Prevacid ® Lansoprazole 2.8 Prostate 3.6 Aciphex ® Rabeprazole (Rx) 1.4
Slide 19: Store Brand Home Healthcare Market
Store Brand Home Healthcare Market $ in billions Adjacent Categories ($20B) = Future Opportunities Feminine Needs First Aid Other, $0.3 Accessories, $2.0 Contraceptives, Adult Incontinence, Baby Accessories, $0.7 $1.4 $1.9 Skin Care, $4.2 Eye/Contact Lens Care, $2.0 Diet, $2.2 Categories Cough Drops
Slide 20: Nutritionals Segment
Nutritionals Segment Includes Vitamins, Minerals, & Supplements and Infant Formula and Nutrition Annual Revenue in millions Nearly Double $600 FY2010 $500 Includes addition from PBM acquisition $400 $300 YTD'11 $200 $380 $226 $259 $100 $171 $158 $0 FY2007 FY2008 FY2009 FY2010 FY2011E Annual Revenue
Slide 21: Rx Pharmaceuticals Segment
Rx Pharmaceuticals Segment Leader of the Generic Topical Market Annual Revenue & Adj. Operating Margin in millions $350 35% + over 45% FY2010 $300 40% 33.0% 31.2% 35% $250 30% 23.1% 23.7% $200 25% $150 20% YTD '11 $238 $251 15% $100 $160 $164 10% $137 $50 5% $0 0% FY2007 FY2008 FY2009 FY2010 FY2011E
Slide 22: Rx New Product Innovation
Rx New Product Innovation Publicly disclosed products Q3 FY2010 Ichthammol Ointment Q4 FY2010 FY2011 Aldara® Mesalamine Enema Kit Analpram E® Cream AG Generic Nasacort® Cream, 5% AG Ciclopirox Shampoo 1% Generic Evoclin® Foam 1% Generic Xyzal® Tablets Analpram HC® Cream Adapalene Cream, 0.1% HalfLyt
Slide 23: Generic OTCs Drive ORx
Generic OTCs Drive ‘ORx®’ OTC DRUGS DISPENSED BY PRESCRIPTION Volume Prescriptions Dispensed at Product Name Written Pharmacy (Previous 12 MO) (Previous 12 MO) LORATADINE 9,421,573 385,429,474 CETIRIZINE HCL 3,048,618 167,170,810 PRILOSEC OTC 2,706,987 113,177,577 OMEPRAZOLE OTC 838,885 33,247,031 S
Slide 24: Active Pharmaceutical Ingredients Segment
Active Pharmaceutical Ingredients Segment Annual Revenue & Adj. Operating Margin in millions $200 Up slightly 25% compared $175 to FY2010 17.5% 12.5% 18.2% 20% $150 15.4% $125 15% $100 $75 10% $144 $136 $144 YTD '11 $121 $50 $119 5% $25 $0 0% FY2007 FY2008 FY2009 FY2010 FY2011E Annual Revenue FY2011
Slide 25: Perrigo FY11 Revised Guidance
Perrigo FY11 Revised Guidance* From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Adj. Consolidated Gross Margin 35% to 36% of Net Sales Adj. Consolidated Operating Margin 19% to 20% of Net Sales Adjusted Diluted EPS $3.90 to $4.00 (29% to 32% Y/Y Growth**) Cash Flow
Slide 26: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 27: Table I
Table I PERRIGO COMPANY Table I RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) FY 2007* FY 2008* FY 2009* FY 2010* Consolidated Net sales $1,367,717 $ 1,727,480 $ 2,005,590 $ 2,271,904 Reported operating income $ 93,859 $ 192,759 $ 249,488 $ 335,899 Acquisition costs - - - 8,189 Deal
Slide 28: Table I (Continued)
Table I (Continued) Table I (Continued) PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) FY 2007* FY 2008* FY 2009* FY 2010* Rx Pharmaceuticals Net sales $ 137,279 $ 159,576 $ 163,947 $ 237,569 Reported operating income $ 19,279 $ 23,428 $ 27,590 $ 48,502 Deal-related a
Slide 29: Table II
Table II FY 2011 GUIDANCE AND FY 2010 EPS Table II RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Reported consolidated gross margin range 33.5.% - 34.5% Deal-related amortization (1,2) 1.2% Inventory step-up (2) 0.3% Adjusted consolidated gross margin range 35.0% -
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