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Perrigo is a leading global consumer-focused self-care company. Our vision is to make lives better by bringing “Quality, Affordable Self-Care Products” that consumers trust everywhere they are sold. The Company is a leading provider of health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed.

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Perrigo Reports Record Sales for Fiscal 2007 Full Year and Fourth Quarter
* Full year revenue increased 6 percent to $1.45 billion; earnings per share increased 4 percent to $0.79, and rose 7 percent to $0.89 on a non-GAAP basis
* Fourth quarter earnings rose 53 percent to $19 million, or $0.20 per share
* Fourth quarter non-GAAP earnings rose 26 percent to $23 million, or $0.24 per share
PRNewswire-FirstCall
ALLEGAN, Mich.

Perrigo Company (NASDAQ: PRGO)(TASE: PRGO) today announced results for fiscal year 2007 and the fourth quarter ended June 30, 2007.

                             Perrigo Company
                 (in thousands, except per share amounts)

                             Fourth Quarter             Fiscal Year
                            2007       2006          2007         2006
   Sales                $374,296   $355,069    $1,447,428   $1,366,821
   Net Income            $18,771    $12,262       $73,797      $71,400
   Adjusted Net Income   $22,663    $17,923       $83,123      $77,836
   Diluted EPS             $0.20      $0.13         $0.79        $0.76
   Adjusted Diluted EPS    $0.24      $0.19         $0.89        $0.83
   Diluted Shares         94,063     94,004        93,807       94,105

The reported results above include a write-off of in-process research and development of $4.8 million after-tax and a charge to cost of sales associated with a step-up of inventory of $2.7 million after-tax related to the March 26, 2007, acquisition of nine generic prescription products and four pipeline products from Glades Pharmaceuticals, Inc. (Refer to Table II at the end of this press release for additional non-GAAP disclosure information.)

Perrigo President and CEO Joseph C. Papa stated, "In fiscal 2007 we achieved record sales in every segment, had record earnings for our fourth quarter and announced two strategic acquisitions designed to increase our return on invested capital. This performance allowed us to significantly increase our research and development investment by funding an incremental $14 million versus last year. It was another strong new product year with $77 million in new product sales, led by smoking cessation. On top of that, we also introduced $59 million of newly reformulated products to the market, all the while improving our customer service levels and investing in our quality systems. The Rx and API segments outperformed our expectations in highly competitive markets.

We exit fiscal 2007 with a stronger balance sheet, lower net debt and operating cash flow of $128.9 million. I am proud of the progress our team has made in the course of this fiscal year."

Fiscal Year 2007

Sales for the 12 months ended June 30, 2007 were $1,447.4 million, compared with $1,366.8 million last year, an increase of $80.6 million, or six percent. Reported net income for the 12 months was $73.8 million, or $0.79 per share. In fiscal 2007 and fiscal 2006, the Company recorded several charges, associated primarily with acquisitions. These net of tax charges are summarized as follows:

                                                       2007       2006
  Write-off of in-process research & development       $4.8
  Inventory step-up                                     2.7       $3.7
  Impairment of loan receivable                         1.3
  Restructuring                                         0.6        5.7
  Gain on sale of equity investment                               (2.9)

                                                       $9.4       $6.5


Excluding the impact of the charges noted above, adjusted net income for fiscal 2007 was $83.1 million, or $0.89 per share. For fiscal year 2006, adjusted net income was $77.8 million, or $0.83 per share.

(Refer to Table II at the end of this press release for additional non- GAAP disclosure information.)

Fiscal Fourth Quarter

In the fiscal year 2007 fourth quarter, sales were $374.3 million, an increase of $19.2 million, or five percent, compared with $355.1 million last year. Reported net income was $18.8 million, or $0.20 per share, compared with net income of $12.3 million, or $0.13 per share a year ago. In the fourth quarter of fiscal 2007 and fiscal 2006, the Company recorded several net of tax charges summarized as follows:

                                                       2007       2006
      * Inventory step-up                              $2.7
      * Impairment of loan receivable                   1.3
      * Restructuring                                             $5.7
                                                       $4.0       $5.7


Adjusted net income, excluding the items above, was $22.7 million, or $0.24 per share, compared with adjusted net income of $17.8 million, or $0.19 per share a year ago.

(Refer to Table II at the end of this press release for additional non- GAAP disclosure information.)

Consumer Healthcare

Consumer Healthcare segment sales for fiscal year 2007 were $1,037.3 million, an increase of $43.1 million, or four percent, compared with $994.2 million last year. The sales increase was driven by new product sales of $69 million, largely nicotine gum and nicotine lozenge smoking cessation products. Reported operating income, which included a pre-tax charge of $6.5 million for a product recall, was $69.6 million compared with $78.8 million last year. Adjusted operating income was $72.5 million compared with $88.0 million last year.

Consumer Healthcare sales in the fourth quarter were $257.3 million, a decrease of $1.0 million, or less than one percent, compared with $258.3 million last year. Reported operating income was $13.5 million, compared with $13.6 million a year ago. Adjusted operating income was $15.4 million, compared with $22.5 million a year ago.

Rx Pharmaceuticals

The Rx Pharmaceutical segment reported sales of $137.8 million, an increase of $16.9 million, or 14 percent, compared with $120.9 million last year. Reported operating income was $23.9 million, compared with $16.6 million a year ago. Excluding inventory step-up charges, the adjusted operating income was $28.4 million.

In the fiscal 2007 fourth quarter, sales were $44.1 million, an increase of $11.1 million, or 34 percent, compared with sales of $33.0 million last year. Reported operating income was $6.9 million, compared with $3.2 million a year ago. Excluding the inventory step-up charges, adjusted operating income was $11.5 million.

API

Fiscal year 2007 sales for the API segment were $122.1 million, an increase of $11.4 million, or 10 percent, compared with sales of $110.7 million a year ago. Reported operating income was $18.9 million, compared with $25.9 million last year.

Fourth quarter sales were $33.6 million, an increase of $6.8 million, or 25 percent, compared with $26.8 million last year. Reported operating income was $4.3 million, compared with $4.8 million last year.

Other

The Other category, consisting of Israel Consumer Products and Israel Pharmaceutical and Diagnostic Products segments, reported sales of $150.2 million, compared with $140.9 million a year ago. Reported operating income was $8.2 million, compared with $3.5 million last year.

In the fourth quarter, sales were $39.3 million, compared with $37.0 million a year ago. Reported operating income was $1.4 million, compared with $2.6 million last year.

For fiscal 2007, unallocated expenses of $22.0 million consisted of both corporate costs of $13.7 million and $8.3 million write-off of in-process R&D. In the fourth quarter, unallocated costs were $3.3 million, in-line with last year.

Outlook

Perrigo's President and CEO Joseph C. Papa concluded, "Overall, we are pleased with the results this year. The operational focus of our teams during the second half of 2007 positions us well for 2008. Going forward we will continue to invest in R&D, maintain our high quality standards and enhance our supply chain to improve our competitive position. We expect our fiscal year 2008 earnings to be in the range of $1.00 to $1.10 per share, or growth of 12 to 24 percent over last year. Looking ahead, Perrigo will continue to make quality healthcare more affordable for our customers and drive value for our shareholders."

Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and consumer products. The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of manufacturing facilities are the United States, Israel, Mexico and the United Kingdom. Visit Perrigo on the Internet (http://www.perrigo.com/).

Note: Certain statements in this press release 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 financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in the Company's Form 10-K for the year ended July 1, 2006, as well as the Company's subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                             PERRIGO COMPANY
                    CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share amounts)

                                                     Fiscal Year
                                            2007        2006        2005

  Net sales                              $1,447,428  $1,366,821  $1,024,098
  Cost of sales                           1,045,803     969,080     763,709
  Gross profit                              401,625     397,741     260,389

  Operating expenses
     Distribution                            28,426      27,334      18,680
     Research and development                66,480      52,293      38,419
     Selling and administration             199,037     197,936     140,581
        Subtotal                            293,943     277,563     197,680
     Write-off of in-process research
      and development                         8,252          -      386,800
     Restructuring                              879       8,846       6,382
        Total                               303,074     286,409     590,862

  Operating income (loss)                    98,551     111,332    (330,473)
  Interest, net                              16,020      15,207       1,976
  Other income, net                          (6,523)     (9,810)     (1,756)

  Income (loss) before income taxes          89,054     105,935    (330,693)
  Income tax expense                         15,257      34,535      22,290

  Net income (loss)                         $73,797     $71,400   $(352,983)

  Earnings (loss) per share
     Basic                                    $0.80       $0.77      $(4.57)
     Diluted                                  $0.79       $0.76      $(4.57)

  Weighted average shares outstanding
     Basic                                   92,230      92,875      77,313
     Diluted                                 93,807      94,105      77,313

  Dividends declared per share               $0.178      $0.168      $0.155



                               PERRIGO COMPANY
                         CONSOLIDATED BALANCE SHEETS
                               (in thousands)

                                                 June 30,          July 1,
  Assets                                           2007             2006
  Current assets
     Cash and cash equivalents                   $30,305           $19,018
     Investment securities                        49,110            26,733
     Accounts receivable                         282,045           240,130
     Inventories                                 295,114           302,941
     Current deferred income taxes                41,400            52,058
     Assets held for sale                          2,746                -
     Prepaid expenses and other current assets    18,340            16,298
            Total current assets                 719,060           657,178

  Property and equipment
     Land                                         27,681            30,724
     Buildings                                   238,471           228,714
     Machinery and equipment                     397,944           347,469
                                                 664,096           606,907
     Less accumulated depreciation               333,024           287,549
                                                 331,072           319,358

  Restricted cash                                422,000           400,000
  Goodwill                                       196,218           152,183
  Other intangible assets                        156,587           132,426
  Non-current deferred income taxes               54,908            43,143
  Other non-current assets                        45,309            46,336
                                              $1,925,154        $1,750,624

  Liabilities and shareholders' equity
  Current liabilities
     Accounts payable                           $164,318          $179,740
     Notes payable                                11,776            20,081
     Payroll and related taxes                    46,226            54,153
     Accrued customer programs                    48,218            49,534
     Accrued liabilities                          47,333            45,335
     Accrued income taxes                         29,460            14,132
     Current deferred income taxes                17,125             8,456
     Current portion of long-term debt            15,381                -
            Total current liabilities            379,837           371,431

  Non-current liabilities
     Long-term debt                              650,762           621,717
     Non-current deferred income taxes           103,775            81,923
     Other non-current liabilities                36,311            34,809
            Total non-current liabilities        790,848           738,449

  Shareholders' equity
     Preferred stock, without par
      value, 10,000 shares authorized                 -                 -
     Common stock, without par value,
      200,000 shares authorized                  519,419           516,098
     Accumulated other comprehensive income       56,676             3,593
     Retained earnings                           178,374           121,053
            Total shareholders' equity           754,469           640,744
                                              $1,925,154        $1,750,624

  Supplemental Disclosures of Balance
   Sheet Information
     Allowance for doubtful accounts              $9,421           $11,178
     Allowance for inventory                     $36,210           $42,509
     Working capital                            $339,223          $285,747
     Preferred stock, shares issued                   -                 -
     Common stock, shares issued                  93,395            92,922



                               PERRIGO COMPANY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

                                                     Fiscal Year
                                              2007       2006        2005
  Cash Flows (For) From Operating Activities
     Net income (loss)                      $73,797     $71,400  $(352,983)
     Adjustments to derive cash flows
        Write-off of in-process
         research and development             8,252          -     386,800
        Depreciation and amortization        58,032      56,604     34,813
        Asset impairment                      2,034       7,783     3,232
        Share-based compensation              8,953       9,485      8,056
        Deferred income taxes                (1,371)     (5,804)    (9,834)
        Acquisition related expenses
         incurred by acquiree                    -           -     (10,002)
     Sub-total                              149,697     139,468     60,082

      Changes in operating assets and
       liabilities, net of asset and business
       acquisitions and restructuring
         Accounts receivable                (36,812)    (31,085)   (16,903)
         Inventories                         18,786     (31,681)    40,528
         Accounts payable                   (19,186)     38,312     (6,736)
         Payroll and related taxes           (4,956)     12,173    (21,515)
         Accrued customer programs           (1,316)      7,868      7,966
         Accrued liabilities                  2,063     (14,476)     8,820
         Accrued income taxes                15,272     (10,277)     9,932
         Other                                5,375      16,229     (4,530)
       Sub-total                            (20,774)    (12,937)    17,562
            Net cash from operating
             activities                     128,923     126,531     77,644

  Cash Flows (For) From Investing
   Activities
     Purchase of securities                (335,016)    (60,773)  (157,353)
     Proceeds from sales of securities      312,521      51,492    334,465
     Issuance of note receivable             (1,000)     (3,000)        -
     Additions to property and equipment    (45,014)    (36,427)   (26,824)
     Proceeds from sales of property
      and equipment                           2,613          -          -
     Acquisition of assets                  (59,538)         -      (5,562)
     Acquisition of a business, net of cash      -           -    (381,570)
     Acquisition-related dividends               -           -     (12,574)
     Increase in restricted cash                 -           -    (400,000)
             Net cash for investing
              activities                   (125,434)    (48,708)  (649,418)

  Cash Flows (For) From Financing Activities
     Borrowings (repayments) of short-term
      debt, net                              (8,295)     (5,287)     6,421
     Borrowings of long-term debt           130,000      60,000    648,000
     Repayments of long-term debt           (90,000)    (95,000)   (63,000)
     Increase in deferred debt issue costs       -           -        (959)
     Tax effect of stock transactions         1,470        (861)       650
     Issuance of common stock                15,362       8,056      7,031
     Repurchase of common stock             (22,464)    (28,330)    (3,021)
     Cash dividends                         (16,476)    (15,613)   (11,935)
            Net cash from (for)
             financing activities             9,597     (77,035)   583,187

            Net increase in cash and
             cash equivalents                13,086         788     11,413
  Cash and cash equivalents, at
   beginning of period                       19,018      16,707      8,392
  Effect of exchange rate changes on cash    (1,799)      1,523     (3,098)
  Cash and cash equivalents, at end of
   period                                   $30,305     $19,018    $16,707

  Supplemental Disclosures of Cash Flow
   Information
     Cash paid/received during the year for:
        Interest paid                       $33,577     $34,741     $5,248
        Interest received                   $20,079     $21,464     $7,038
        Income taxes paid                   $12,896     $47,133    $23,433
        Income taxes refunded               $11,316      $7,939     $4,407



                                   Table I
                               PERRIGO COMPANY
                             SEGMENT INFORMATION
                                (in thousands)
                                 (unaudited)

                                   Fourth Quarter          Fiscal Year
                                   2007      2006        2007       2006
  Segment Sales
    Consumer Healthcare          $257,272  $258,315  $1,037,305    $994,231
    Rx Pharmaceuticals             44,087    32,965     137,797     120,941
    API                            33,636    26,810     122,143     110,713
    Other                          39,301    36,979     150,183     140,936
         Total                   $374,296  $355,069  $1,447,428  $1,366,821

  Segment Operating Income
    Consumer Healthcare           $13,481   $13,647     $69,579     $78,844
    Rx Pharmaceuticals              6,934     3,179      23,855      16,575
    API                             4,310     4,840      18,899      25,939
    Other                           1,447     2,640       8,192       3,517
    Unallocated expenses           (3,251)   (3,367)    (13,722)    (13,543)
    Write-off of in process R&D       -         -        (8,252)        -
         Total                    $22,921   $20,939     $98,551    $111,332



                                  Table II
                               PERRIGO COMPANY
                     RECONCILIATION OF NON-GAAP MEASURES
                   (in thousands, except per share amounts)
                                 (unaudited)

                                    Fourth Quarter         Fiscal Year
                                    2007     2006         2007      2006

  Reported gross profit          $108,474  $107,977    $401,625  $397,741
    Inventory step-up - Agis           -         -           -      4,762
    Inventory step-up - Glades      4,573        -        4,573        -
    Impairment of note receivable      -         -           -         -
  Adjusted gross profit          $113,047  $107,977    $406,198  $402,503

  Reported operating income       $22,921   $20,939     $98,551  $111,332
    Inventory step-up - Agis           -         -           -      4,762
    Inventory step-up - Glades      4,573        -        4,573        -
    Impairment of note receivable   2,034        -        2,034        -
    Restructuring                     (69)    8,846         879     8,846
    Write-off of in-process R&D        -         -        8,252        -
  Adjusted operating income       $29,459   $29,785    $114,289  $124,940

  Reported net income             $18,771    12,262     $73,797   $71,400
    Inventory step-up - Agis (1)       -         -           -      3,714
    Inventory step-up - Glades (2)  2,675        -        2,675       -
    Impairment of note
     receivable (3)                 1,261        -        1,261       -
    Restructuring (4)                 (44)    5,661         563     5,661
    Write-off of in-process R&D (2)    -         -        4,827       -
    Gain on sale of equity method
     investment (5)                    -         -           -     (2,939)
  Adjusted net income             $22,663   $17,923     $83,123   $77,836

  Diluted earnings per share
    Reported                        $0.20     $0.13       $0.79     $0.76
    Adjusted                        $0.24     $0.19       $0.89     $0.83

  Diluted weighted average shares
   outstanding                     94,063    94,004      93,807    94,105

  (1) Net of taxes at 22%
  (2) Net of taxes at 41.5%
  (3) Net of taxes at 38%
  (4) Net of taxes at 36%
  (5) Net of taxes at 37%



                             Table II (Continued)
                             REPORTABLE SEGMENTS
                     RECONCILIATION OF NON-GAAP MEASURES
                   (in thousands, except per share amounts)
                                 (unaudited)

                                     Fourth Quarter       Year-To-Date
                                     2007      2006      2007      2006
      Consumer Healthcare
      Reported gross profit       $62,219   $68,203    $236,999  $250,741
        Inventory step-up - Agis       -         -           -        318
      Adjusted gross profit       $62,219   $68,203    $236,999  $251,059

      Reported operating income   $13,481   $13,647     $69,579   $78,844
        Inventory step-up - Agis       -         -           -        318
        Impairment of note
         receivable                 2,034        -        2,034        -
        Restructuring                 (69)    8,846         879     8,846
      Adjusted operating income   $15,446   $22,493     $72,492   $88,008

      Rx Pharmaceuticals
      Reported gross profit       $16,315   $14,923     $57,621   $49,684
        Inventory step-up -
         Glades                     4,573        -        4,573       -
      Adjusted gross profit       $20,888   $14,923     $62,194   $49,684

      Reported operating income    $6,934    $3,179     $23,855   $16,575
        Inventory step-up - Glades  4,573        -        4,573        -
      Adjusted operating income   $11,507    $3,179     $28,428   $16,575

      API
      Reported gross profit       $16,171   $11,149     $54,634   $50,260
        Inventory step-up - Agis       -         -           -      1,747
      Adjusted gross profit       $16,171   $11,149     $54,634   $52,007

      Reported operating income    $4,310    $4,840     $18,899   $25,939
        Inventory step-up - Agis       -         -           -      1,747
      Adjusted operating income    $4,310    $4,840     $18,899   $27,686

      Other
      Reported gross profit       $13,769   $13,702     $52,372   $47,056
        Inventory step-up - Agis       -         -           -      2,697
      Adjusted gross profit       $13,769   $13,702     $52,372   $49,753

      Reported operating income    $1,447    $2,640      $8,192    $3,517
        Inventory step-up - Agis       -         -           -      2,697
      Adjusted operating income    $1,447    $2,640      $8,192    $6,214

      Unallocated
      Reported operating loss     $(3,251)  $(3,367)   $(21,974) $(13,543)
        Write-off of in-process R&D    -         -        8,252        -
      Adjusted operating loss     $(3,251)  $(3,367)   $(13,722) $(13,543)

First Call Analyst:
FCMN Contact: pblain@perrigo.com

SOURCE: Perrigo Company

CONTACT: Arthur J. Shannon, Vice President, Investor Relations and
Communication, +1-269-686-1709, or ajshannon@perrigo.com; or Ernest J. Schenk,
Manager, Investor Relations and Communication, +1-269-673-9212,
eschenk@perrigo.com, both of Perrigo Company

Web site: http://www.perrigo.com/