Perrigo Company PLC (PRGO)

History and Background

Perrigo Company PLC was founded in 1887 in Allegan, Michigan, as a general store. It evolved into a manufacturer of over-the-counter (OTC) pharmaceuticals and nutritional products, growing through acquisitions and organic expansion.

Core Business Areas

• Consumer Self-Care Americas (CSCA): Develops, manufactures, and markets store brand OTC products, primarily in the US and Canada. Includes cough, cold, allergy, pain relief, and digestive health categories.
• Consumer Self-Care International (CSCI): Focuses on branded consumer self-care products outside of the Americas, with a portfolio including cough, cold, and allergy products, as well as skincare and vitamins.

Leadership and Structure

Perrigo is led by a CEO and senior management team. The company has a board of directors responsible for oversight. The organizational structure is divided into business segments (CSCA and CSCI) and functional areas.

Key Offerings

• Store Brand OTC Products: Perrigo is the largest manufacturer of store brand, private label OTC products in the U.S. Market share varies by category but is generally significant in core segments like pain relief, cough/cold, and allergy. Competitors include large pharmaceutical companies with branded OTC offerings and other generic manufacturers. Revenue from these products comprises a significant portion of Perrigo's overall revenue.
• Infant Formula: Perrigo is a leading supplier of store-brand infant formula. Market share is substantial, especially during supply chain disruptions affecting branded formulas. Competitors include Abbott Nutrition (ABT) and Reckitt Benckiser (RBGLY) for branded formulas and other private label manufacturers. Sales of infant formula constitute a notable segment of Perrigo's CSCA revenue.

Industry Overview

The OTC pharmaceutical market is characterized by increasing consumer interest in self-care, aging populations, and cost containment pressures in healthcare. It is a competitive market with both branded and generic players.

Positioning

Perrigo is positioned as a leading provider of affordable, quality OTC products, particularly store brands. Its competitive advantages include its manufacturing scale, distribution network, and relationships with retailers.

Total Addressable Market (TAM)

The global OTC market is projected to reach hundreds of billions of dollars. Perrigo is well-positioned to capture a significant share of this TAM through its diverse product portfolio and strategic partnerships.

Key Competitors

• JNJ
• PG
• MYL

Competitive Landscape

Perrigo has the advantage of being the leading store brand producer but lacks the brand recognition of JNJ and PG. Mylan is a competitor in the generic space. Perrigo focuses on low-cost manufacturing and distribution.

HRA Pharma

• Year: 2022
• Acquisition Price (USD millions): 2100
• Strategic Rationale: Expanded Perrigo's presence in the international self-care market and added a portfolio of differentiated consumer health brands.

Historical Growth: Historical growth has been driven by acquisitions and organic expansion in the OTC market.

Future Projections: Future growth projections are based on analyst estimates, which factor in market trends, competition, and Perrigo's strategic initiatives.

Recent Initiatives: Recent strategic initiatives may include acquisitions, product launches, cost-cutting measures, and investments in research and development.

Perrigo is a major player in the OTC and store-brand pharmaceutical market with strong retail partnerships. However, reliance on store brands makes it vulnerable to pricing pressure. Recent acquisitions aim to diversify its portfolio and expand internationally. Future growth depends on successful integration and strategic investments.

Data Sources:

• Perrigo Company PLC Investor Relations
• SEC Filings
• Market Research Reports
• Analyst Estimates

Disclaimers:

This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.