Businessweek

Perrigo Company, through its wholly owned subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API). The company’s primary markets and locations of manufacturing and logistics operations are the United States (U.S.), Israel, Mexico, the United Kingdom (U.K.), and Australia. The company’s U.S. operations are concentrated in Michigan, Minnesota, South Carolina, New York, Vermont, and Ohio. In the U.S., the company’s operations are conducted primarily through L. Perrigo Company; Perrigo Company of South Carolina, Inc.; Perrigo New York, Inc.; Perrigo Holland, Inc.; PBM Holdings, Inc.; Paddock Laboratories, LLC; and Perrigo Diabetes Care, LLC. Outside the U.S., its operations are conducted primarily through Perrigo Israel Pharmaceuticals Ltd.; Chemagis Ltd.; Quimica y Farmacia S.A. de C.V.; Laboratorios Diba, S.A.; Wrafton Laboratories Limited; Galpharm Healthcare Ltd.; and Orion Laboratories Pty Ltd. Segments The company operates through four segments: Consumer Healthcare, Nutritionals, Rx Pharmaceuticals, and API. In addition, the company has an Other category that consists of the Israel pharmaceutical and diagnostic products operating segment. CONSUMER HEALTHCARE This segment operates as a manufacturer of OTC pharmaceutical products. This segment’s major product categories include analgesics, cough/cold/allergy/sinus, gastrointestinal and smoking cessation, and secondary product categories, such as feminine hygiene, diabetes care, and dermatological care. In January 2012, the company acquired CanAm Care, LLC, a distributor of diabetes care products, located in Alpharetta, Georgia. The company engages in developing and marketing new store brand products. In addition, the company engages in contract manufacturing, which focuses on partnerships with major pharmaceutical, multi-level marketing, and direct-to-consumer companies by providing abbreviated new drug application and monograph products to its contract customers to improve sales of proprietary formulas and to utilize available capacity. This segment markets approximately 2,100 store brand products, with approximately 9,000 stock-keeping units (SKUs), to approximately 800 customers. The company also manufactures and markets certain products under its Good Sense brand. The company launched various new products for the period ended June 30, 2012, including lansoprazole 15 mg capsules, loratadine-D 12 hour extended release tablets, and minoxidil 5% foam. For the period ended June 30, 2012, the company, on its own or in conjunction with partners, received approval from the U.S. Food and Drug Administration (FDA) for five OTC drug applications. The applications were for the following products, including dextromethorphan polistirex suspension, guaifenesin extended release 600 mg tablets, lansoprazole 15 mg capsules, nicotine coated cinnamon 2 mg gum, and nicotine coated cinnamon 4 mg gum. As of June 30, 2012, the company, on its own or in conjunction with partners, had 11 OTC drug applications pending approval with the FDA. Customers The company’s U.S.-based customers include major national and regional retail drug, supermarket, and mass merchandise chains, including Walmart, CVS, Walgreens, Kroger, Target, Dollar General, Rite Aid, Sam’s Club, and Costco; and major wholesalers, including McKesson, AmerisourceBergen, and Cardinal Health, Inc. Distribution This segment employs its own sales force to service major customers and uses industry brokers for some retailers. Competition The company’s competitors include Dr. Reddy’s Laboratories, Ltd.; Watson Pharmaceuticals, Inc.; Actavis Group hf.; Aaron Industries, Inc.; Ohm Laboratories, Inc.; PL Developments; and LNK International, Inc. NUTRITIONALS This segment develops, manufactures, markets, and distributes store brand infant and toddler formula products; infant and toddler foods; vitamin, mineral, and dietary supplement products; and oral electrolyte solution products to retailers, distributors, and consumers primarily in the U.S