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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 and Income for Fiscal 2008 First Quarter; Increases Full Year Guidance
-- First quarter revenue increased $43 million, or 12 percent, to $383 million
-- GAAP net income increased 102 percent to $34 million, or $0.36 per share
-- Investments in Research and Development, up 25% versus last year
-- Fiscal 2008 earnings guidance increased to between $1.12 and $1.22 per share
PRNewswire-FirstCall
ALLEGAN, Mich.

The Perrigo Company (NASDAQ: PRGO)(TASE: PRGO) today announced results for its fiscal year 2008 first quarter that ended September 29, 2007.

                             Perrigo Company
                 (in thousands, except per share amounts)

                                 Fiscal 2008         Fiscal 2007
                            1st Quarter Ended     1st Quarter Ended
                                 9/29/07              9/30/06
  Sales                         $382,740             $340,215
  Net Income                     $34,019              $16,882
  Diluted EPS                      $0.36                $0.18
  Diluted Shares                  94,884               93,273


Sales for the first quarter of fiscal 2008 were $382.7 million, an increase of twelve percent. Net income was $34.0 million, or $0.36 per share, compared with $16.9 million, or $0.18 per share, a year ago, which included expense for a product recall of $0.7 million after-tax, or $0.01 per share.

Perrigo Chairman and CEO Joseph C. Papa stated, "In the first quarter we achieved both record sales and record earnings. It was another strong new product quarter with $11 million in new product sales, led by smoking cessation. On top of that, we had more than $20 million in incremental new business sales due to issues at a competitor. Improvements in supply chain initiatives, quality and inventory management also helped us deliver higher operating margins. The Rx segment similarly contributed strong operating results, led by our new products acquired from Glades. API again substantially outperformed our expectations, growing over 30 percent from last year in a very competitive marketplace. On top of this, our focus on working capital has paid off with $28 million of cash flow from operations in the quarter."

Mr. Papa continued, "We are raising our fiscal year 2008 earnings guidance to $1.12 to $1.22 per share, a growth of 26 to 37 percent over adjusted EPS last year. This range is exclusive of the Omeprazole new product launch. Our initial guidance was based, in part, on the public comments of our competitor that they would return to the market in December. With one solid quarter behind us, our team feels more comfortable in our ability to retain this business. With these positive tailwinds we are excited about our prospects for the rest of the year."

Consumer Healthcare

Consumer Healthcare segment sales in the first quarter were a record $268.3 million compared with $241.8 million in the first quarter last year, an increase of $26.5 million or 11 percent. The sales increase resulted from $10 million in revenue from new product sales, approximately $20 million in incremental new business and gains in non-U.S. businesses that was partially offset by the withdrawal of fiber laxatives and lower vitamin sales.

Operating income was $29.5 million, compared with $17.1 million a year ago as a result of higher gross margins from new products, supply chain efficiencies and international growth. Additionally, last year's quarter included higher inventory costs and costs related to a product recall.

On July 11, the Company announced it had closed its transaction to acquire Qualis, Inc., a manufacturer of store brand pediculicide products that compare to Rid® and Nix®. Shipments began this quarter.

Rx Pharmaceuticals

The Rx Pharmaceutical segment sales were $35.0 million, including $5.8 million in service and royalty revenues, compared with $31.4 million a year ago. Fiscal 2008 first quarter sales also included $6.6 million in sales of products acquired from Glades Pharmaceuticals. Operating income was $7.4 million, up from $5.8 million last year.

On September 19, the Company announced it had received final approval from the FDA for ciclopirox topical solution, 8% (equivalent to Penlac® Nail Lacquer), indicated for the treatment of fingernail and toenail infections. Shipments began immediately.

API

The API segment reported sales of $38.8 million compared with $29.8 million a year ago, reflecting strong sales in several key products. Operating income was $7.3 million, compared with $4.7 million last year, reflecting the higher sales volume and a favorable sales mix.

Other

The Other category, consisting of Israel Consumer Products and Israel Pharmaceutical and Diagnostic Products segments, reported sales of $40.7 million, compared with $37.2 million a year ago. Operating income was $2.5 million, compared with $2.7 million last year.

In the fiscal 2007 first quarter, unallocated expenses were $0.7 million compared with $4.5 million a year ago. The decrease was due primarily to a legal settlement.

Perrigo's Chairman and CEO Joseph C. Papa concluded, "I am very pleased with the momentum we have built and am excited about our full year prospects. Our focus on quality, supply chain improvements and improved customer service drove these results. Our on-going investment in R&D continues to add new products with the largest launch in our history expected soon. Looking ahead, Perrigo will continue to make quality healthcare more affordable for our customers and drive value for our shareholders."

Perrigo will host a conference call to discuss fiscal 2008 first quarter results at 10:00a.m. (ET) on Thursday, November 1. The conference call will be available live via web cast to interested parties on the Perrigo website http://www.perrigo.com/ or by phone 888-694-4676, International 973-582-2737, and reference ID# 9363591. A taped replay of the call will be available beginning at approximately 2:30 p.m. (ET) Thursday, November 1, until midnight Friday, November 9, 2007. To listen to the replay, call 877-519-4471, International 973-341-3080, access code 9363591.

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 June 30, 2007, 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
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share amounts)
                               (unaudited)

                                                         First Quarter
                                                     2008              2007
             Net sales                           $382,740          $340,215
             Cost of sales                        266,022           247,400
             Gross profit                         116,718            92,815

             Operating expenses
                Distribution                        7,074             7,384
                Research and development           16,320            13,047
                Selling and administration         47,275            46,672
                  Total                            70,669            67,103

             Operating income                      46,049            25,712
             Interest, net                          4,655             4,586
             Other income, net                     (1,183)              (61)

             Income before income taxes            42,577            21,187
             Income tax expense                     8,558             4,305

             Net income                           $34,019           $16,882

             Earnings per share
                Basic                               $0.37             $0.18
                Diluted                             $0.36             $0.18

             Weighted average shares outstanding
                Basic                              93,142            92,168
                Diluted                            94,884            93,273

             Dividends declared per share          $0.045            $0.043



                             PERRIGO COMPANY
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                           Sept. 29,    June 30,   Sept. 30,
                                             2007        2007        2006
  Assets                                 (unaudited)             (unaudited)
  Current assets
     Cash and cash equivalents              $46,837     $30,305     $33,027
     Investment securities                   32,487      49,110      27,922
     Accounts receivable                    283,443     282,045     230,239
     Inventories                            314,597     295,114     326,538
     Current deferred income taxes           41,372      41,400      52,215
     Income taxes refundable                  5,596         -           -
     Assets held for sale                     2,746       2,746         -
     Prepaid expenses and other current
      assets                                 20,264      18,340      21,068
            Total current assets            747,342     719,060     691,009

  Property and equipment                    665,239     664,096     617,813
     Less accumulated depreciation          343,033     333,024     298,260
                                            322,206     331,072     319,553

  Restricted cash                           400,000     422,000     400,000
  Goodwill                                  199,730     196,218     183,205
  Other intangible assets                   187,467     159,977     137,876
  Non-current deferred income taxes          49,184      54,908      43,380
  Other non-current assets                   40,723      41,919      40,651
                                         $1,946,652  $1,925,154  $1,815,674

  Liabilities and Shareholders' Equity
  Current liabilities
     Accounts payable                      $170,639    $164,318    $172,680
     Notes payable                           11,677      11,776       5,740
     Payroll and related taxes               38,425      46,226      41,458
     Accrued customer programs               48,638      48,218      45,084
     Accrued liabilities                     44,142      47,333      41,164
     Accrued income taxes                       -        29,460      17,501
     Current deferred income taxes           15,214      17,125       9,837
     Current portion of long-term debt       15,314      15,381         -
            Total current liabilities       344,049     379,837     333,464

  Non-current liabilities
     Long-term debt                         642,629     650,762     678,272
     Non-current deferred income taxes      101,424     103,775     105,427
     Other non-current liabilities           87,324      36,311      36,922
            Total non-current liabilities   831,377     790,848     820,621

  Shareholders' equity
     Preferred stock, without par value,
      10,000 shares authorized                  -           -           -
     Common stock, without par value,
      200,000 shares authorized             521,117     519,419     510,132
     Accumulated other comprehensive
      income                                 47,864      56,676      17,461
     Retained earnings                      202,245     178,374     133,996
            Total shareholders' equity      771,226     754,469     661,589
                                         $1,946,652  $1,925,154  $1,815,674

  Supplemental Disclosures of Balance
   Sheet Information
     Allowance for doubtful accounts         $8,622      $9,421     $12,195
     Allowance for inventory                $34,947     $36,210     $40,992
     Working capital                       $403,293    $339,223    $357,545
     Preferred stock, shares issued             -           -           -
     Common stock, shares issued             93,566      93,395      92,556



                             PERRIGO COMPANY
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)
                               (unaudited)

                                                          First Quarter
                                                     2008              2007
     Cash Flows From (For) Operating Activities
        Net income                                $34,019           $16,882
        Adjustments to derive cash flows
           Depreciation and amortization           15,570            13,502
           Share-based compensation                 1,958             2,434
           Deferred income taxes                    2,120            (1,157)
        Sub-total                                  53,667            31,661


     Changes in operating assets and liabilities
           Accounts receivable                     (3,389)            8,550
           Inventories                            (21,356)          (25,211)
           Accounts payable                         7,665            (5,785)
           Payroll and related taxes               (7,437)          (12,423)
           Accrued customer programs                  420            (4,450)
           Accrued liabilities                     (3,584)           (4,203)
           Accrued income taxes                     2,276             3,474
           Other                                     (563)            1,983
        Sub-total                                 (25,968)          (38,065)
              Net cash from (for)
               operating activities                27,699            (6,404)

     Cash Flows (For) From Investing Activities
        Purchase of securities                    (73,418)          (52,340)
        Proceeds from sales of securities          89,182            51,074
        Asset acquisition                         (12,401)              -
        Additions to property and equipment        (4,364)           (8,113)
              Net cash for investing activities    (1,001)           (9,379)

     Cash (For) From Financing Activities
        Repayments of short-term debt, net            (99)          (14,331)
        Borrowings of long-term debt               30,000            55,000
        Repayments of long-term debt              (38,000)              -
        Tax (expense) benefit of stock
         transactions                                (135)              616
        Issuance of common stock                    4,155             2,222
        Repurchase of common stock                 (4,280)          (11,238)
        Cash dividends                             (4,214)           (3,939)
              Net cash (for) from
               financing activities               (12,573)           28,330

             Net increase in cash and
              cash equivalents                     14,125            12,547
     Cash and cash equivalents, at
      beginning of period                          30,305            19,018
     Effect of exchange rate changes on cash        2,407             1,462
     Cash and cash equivalents, at end of period  $46,837           $33,027

     Supplemental Disclosures of Cash
      Flow Information
        Cash paid/received during the period for:
           Interest paid                          $10,019            $8,309
           Interest received                       $5,189            $4,700
           Income taxes paid                         $588            $1,797
           Income taxes refunded                     $672              $-



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

                                                      First Quarter
                                                  2008              2007
  Segment Sales
    Consumer Healthcare                         $268,259          $241,809
    Rx Pharmaceuticals                            34,960            31,425
    API                                           38,814            29,779
  Other                                           40,707            37,202
             Total                              $382,740          $340,215

  Segment Operating Income
    Consumer Healthcare                          $29,549           $17,100
    Rx Pharmaceuticals                             7,445             5,787
    API                                            7,276             4,658
    Other                                          2,489             2,664
    Unallocated expenses                            (710)           (4,497)
             Total                               $46,049           $25,712

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, ajshannon@perrigo.com; or Ernest J. Schenk,
Manager, Investor Relations and Communication, +1-269-673-9212,
eschenk@perrigo.com

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