Perrigo Co PLC Profile
Perrigo Company plc (Perrigo) operates as a pure-play self-care company. The company is serving the health and wellness needs of consumers.
As one of the originators of the over-the-counter (‘OTC’) self-care market, Perrigo has a powerful legacy and vast scale in producing self-care products through a proven ability to proactively shape its portfolio to meet the evolving needs of consumers and customers.
Perrigo provides access to trusted self-care products that can be procured without needing to visit a doctor for a prescription. Perrigo's broad offerings are well diversified across several major product categories, as well as across geographies, primarily in North America and Europe with no one product representing more than 3% of total revenue. In North America, Perrigo is the leading store brand private label provider of self-care products in many categories, including upper respiratory, nutrition and women's health. In Europe, the company’s portfolio primarily consists of brands, including Compeed, EllaOne, Solpadeine, and ACO.
Segments
The company’s reporting and operating segments are as follows:
Consumer Self-Care Americas (‘CSCA’) comprises the company’s consumer self-care business in the U.S. and Canada. CSCA previously included the company’s Latin American businesses until they were disposed on March 9, 2022.
Consumer Self-Care International (‘CSCI’) comprises the company’s consumer self-care business outside of the U.S. and Canada, primarily in Europe and Australia.
Consumer Self-Care Americas
The CSCA segment develops, manufactures and markets the company’s leading self-care consumer products in the U.S. and Canada. The company primarily provides its customers self-care products that are sold and marketed under the customer's own brands and/or exclusive brands (‘store brands’). The company additionally has a select lineup of branded self-care products. Customers include major global, national, and regional retail drug, supermarket, and mass merchandise chains, e-commerce stores, and major wholesalers.
The company’s store brand products are comparable in quality and effectiveness to national brands. Store brand products must meet the same stringent U.S. Food and Drug Administration (‘FDA’) requirements as national brands within the U.S. and the requirements of comparable regulatory bodies outside the U.S. In most instances, the company’s product packaging, marketing and advertising, and e-commerce focus are designed to invite and reinforce comparison to national brand products, while conveying a better value for consumers.
Certain branded products are developed, manufactured and distributed within the CSCA segment. The company’s primary branded products sold under brand names include Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, and Steripod. On July 13, 2023, the FDA approved Opill for OTC use for all ages. Opill is the first ever birth control pill available over the counter in the United States.
Consumer Self-Care International
The CSCI segment comprises the company’s consumer self-care product categories outside the U.S. and Canada, including the company’s branded products in Europe and Australia and the company’s store brand products in the United Kingdom and parts of Europe and Asia. These products are developed, manufactured, marketed and distributed by the company, leveraging its broad regulatory, sales and distribution infrastructure to drive market share, innovate new products and brands, in-license and expand product lines, and sell and distribute third-party brands. The CSCI segment products are sold primarily through an established pharmacy sales force to an extensive network of customers, including pharmacies, wholesalers, drug and grocery store retailers, e-commerce stores, and para-pharmacies in more than 29 countries, predominantly in Europe. Products in the CSCI segment are marketed using broadcast and digital advertising, as well as point-of-sale promotional spending to enhance brand equity.
While the company have hundreds of brands, the company primarily concentrates its resources on 'Focus Brands' and sub-brands, such as Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, Compeed, and ellaOne. Many of these Focus Brands have leading positions in the markets in which they compete. Additional resources, including R&D investments, are allocated to these Focus Brands to strengthen their market position in high opportunity profit categories while leveraging the same R&D efforts under smaller local brands. The new product pipeline is supported by internal R&D, new product development, acquisitions and partnerships, both in terms of brand extensions and product improvements.
Products
The company offers products in the following categories:
Upper Respiratory: Products that relieve upper respiratory symptoms, including cough suppressants, expectorants, sinus and allergy relief.
Nutrition: Infant formulas and nutritional beverages.
Digestive Health: Products, such as antacids, anti-diarrheal, and anti-heartburn that relieve symptoms associated with digestive issues.
Pain and Sleep-Aids: Products consisted of pain relievers, fever reducers and sleep-aids.
Oral Care: Products used for oral care, including toothbrushes, toothbrush replacement heads, floss, flossers, whitening products and toothbrush covers.
Healthy Lifestyle: Products that help consumers live a healthy lifestyle, such as smoking cessation, and well-being products.
Skin Care: Products for the face and body, such as dermatological care, scar management, lice treatment, and other products for various skin conditions.
Women's Health: Women's health products, including feminine hygiene and contraceptives.
Vitamins, Minerals, and Supplements (‘VMS’): Vitamins, minerals, and supplements.
Other: Rare diseases business and other miscellaneous self-care products.
In April 2022, the company completed the acquisition of HRA Pharma. HRA Pharma operating results are reported within both the company’s CSCA and CSCI segments. As a result of the acquisition, the company made the following updates to its global reporting product categories described above:
The creation of a new ‘Women's Health’ reporting category, consisted of the women's health portfolio of HRA Pharma, including ellaOne and Hana, in addition to legacy Perrigo women's health products, including feminine hygiene and contraceptive products;
The creation of a new ‘Skin Care’ reporting category, consisted of Compeed, Mederma, and all of the products in the legacy Perrigo ‘Skincare and Personal Hygiene’ category except for legacy Perrigo women's health products; and
The ‘Other’ category includes the Rare Diseases business acquired with HRA Pharma exclusive to the CSCI segment.
New Products
Notable new product launches in the year ended December 31, 2023 included the Acetaminophen and Ibuprofen Dual Action product, the over-the-counter use of Nicotine Coated Lozenges and Cold/Flu Honey Liquids in CSCA, and the launch of the Compeed Stops products brand in CSCI. The company also launched various CSCI line extensions in the XLS weight management brand in the Healthy lifestyle category, and in VMS under the brands Arterin, Davitamon, Apiserum and Abtei.
CSCI
On March 1, 2023, the company had received final approval from the FDA for the company’s Abbreviated New Drug Application (‘ANDA’) for Acetaminophen and Ibuprofen Tablets, 250 mg/125 mg, the store brand OTC equivalent of Advil Dual Action Tablets 250 mg/125 mg. On May 10, 2023, the FDA Nonprescription Drugs Advisory Committee (‘NDAC’) and the Obstetrics, Reproductive, and Urologic Drugs Advisory Committee voted unanimously 17 to 0, with no abstentions, that the benefits of making Opill, a progestin-only daily oral contraceptive, available for OTC use outweighs the risks. The FDA approved Opill for OTC use for all ages. Opill is the first ever birth control pill available over the counter in the United States and Perrigo was awarded the ‘Innovation of the Year’ in the health category by Popular Science in December 2023. Opill is expected to launch during the first quarter of 2024. On May 16, 2023, the FDA granted final approval for Nicotine Coated Mint Lozenges, 2 mg and 4 mg OTC. This product will be marketed under retailer's store brand labels as a comparable offering to Nicorette Coated Ice Mint Lozenge.
Each of the company’s product categories and 'Focus Brands' have a three to five-year innovation master plan. The company relies on both internal R&D and strategic product development agreements with outside sources to develop new products.
Significant Customers
Sales to Walmart Inc. represented 11.8% of the company’s consolidated net sales in 2023.
Competition
The company’s primary competitors include manufacturers, such as Dr. Reddy's Labs, LNK International, Inc., PL Developments, Aurobindo and Sun Pharmaceuticals; and brand-name pharmaceutical and consumer product companies, such as Haleon (the consumer health business spun-off by GSK plc in 2022), Kenvue (the consumer health business unit of Johnson & Johnson), Procter & Gamble, Reckitt Benckiser, Abbott Nutrition, Bayer AG, Sanofi, Philips, Teva, Viatris, Stada, and Novartis.
Government Regulation
The company is committed to consistently providing its customers with high quality products that adhere to the various regulations promulgated by the FDA. The FDA conducts periodic compliance inspections of the company’s facilities and processes.
The company’s infant formula manufacturing sites in Vermont, Ohio and Wisconsin adhere to the standards of the U.S. Department of Agriculture (‘USDA’) National Organic Program for production, handling, and processing to maintain the integrity of organic products and are USDA-certified, enabling them to produce and label organic products for the U.S. and Canadian markets.
The company is subject to the requirements regarding List I chemicals. The company’s facilities that manufacture, distribute, import, or export any List 1 Chemicals must register annually with the DEA and are subject to inspection and enforcement action if found out of compliance.
The company is subject to various other federal, state, non-governmental, and local agency rules and regulations, including among others: the U.S. federal anti-bribery laws; Federal Trade Commission regulation of advertising and promotion of consumer goods; consumer product safety requirements; state and federal privacy laws and regulations; laws requiring certain pharmaceutical manufacturers to track and report payments to physicians and teaching hospitals; and non-governmental standard-setting organizations, such as the International Organization for Standardization (‘ISO’) and the United States Pharmacopoeia Convention, Inc. (‘USP’).
The company must comply with a variety of U.S. laws related to doing business outside of the U.S., including but not limited to, Office of Foreign Asset Controls; United Nations and EU sanctions; the Iran Threat Reduction and Syria Human Rights Act of 2012; rules relating to the use of certain ‘conflict minerals’ under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and regulations enforced by the U.S. Customs and Border Patrol.
History
Perrigo Company plc was founded in 1887. The company was incorporated under the laws of Ireland in 2013.
