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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 First Quarter Sales and Income
* Fiscal first quarter revenue of $480 million represents an increase of $97 million, or 25 percent, from first quarter last year
* GAAP net income was $38 million, or $0.40 per share, while adjusted net income increased 13 percent to $39 million, or $0.41 per share
* New product sales totaled $71 million, including the August launch of Famotidine Complete
* Management increases fiscal 2009 earnings guidance by 2 cents per share

Perrigo Company (NASDAQ: PRGO)(TASE: PRGO) today announced results for its fiscal year 2009 first quarter that ended September 27, 2008.

                             Perrigo Company
                 (in thousands, except per share amounts)

                                      Fiscal 2009           Fiscal 2008
                                    1st Quarter Ended     1st Quarter Ended
                                        9/27/08               9/29/07
  Net Sales                            $480,236              $382,740
  Reported Net Income                   $37,958               $34,019
  Adjusted Net Income                   $38,597               $34,019
  Diluted EPS                             $0.40                 $0.36
  Adjusted Diluted EPS                    $0.41                 $0.36
  Diluted Shares                         94,568                94,884

Net sales for the first quarter of fiscal 2009 were $480.2 million, an increase of 25 percent. Reported net income was $37.9 million, or $0.40 per share, compared with $34.0 million, or $0.36 per share, a year ago, an increase of 12 percent. Excluding a loss on the exchange of property of the Company's UK vitamin business, first quarter fiscal 2009 adjusted net income was $38.6 million, or $0.41 per share.

(Refer to Table II at the end of this press release for additional adjustments in the current year period and additional non-GAAP disclosure information.)

Perrigo Chairman and CEO Joseph C. Papa stated, "Fiscal 2009 is off to the strong start we had anticipated. In the first quarter, we achieved both record sales and record earnings, with our new products contributing $71 million to top line growth. This past quarter, the over-the-counter (OTC) category grew more than 4% versus first quarter last year. In the same period, store brands grew nearly 13%. We believe that store brand offerings will continue to perform well as consumers realize the value of Perrigo's product offering in this challenging economy."

Consumer Healthcare

Consumer Healthcare segment net sales in the first quarter were a record $366.2 million compared with $268.3 million in the first quarter last year, an increase of $97.9 million or 37 percent. The sales increase resulted from $66.8 million in revenue from new product sales led by Omeprazole, several Cetirizine products and the newly launched Famotidine Complete.

Reported operating income was $59.1 million, compared with $30.0 million a year ago as a result of increased sales from new products and international growth.

On August 11, the Company announced it began shipping Famotidine Complete chewable tablets (famotidine 10 mg; calcium carbonate 800mg; magnesium hydroxide 165 mg), the national brand equivalent to Pepcid Complete®, to customers across the U.S. under their store brand labels. It is estimated that Pepcid Complete® has annual sales of approximately $100 million. The new store brand product is indicated for heartburn associated with acid indigestion and sour stomach.

On September 16, the Company announced that it acquired JB Laboratories for approximately $44 million, which includes debt assumed. Based in Holland, Michigan, privately-held JB Laboratories is a contract manufacturer of OTC and nutrition products for leading healthcare suppliers. The acquisition is expected to add more than $70 million of annual sales. Revenues and income related to this transaction will first be reflected in the second quarter 2009 financial statements.

On September 18, the Company announced that the Hatch-Waxman litigation relating to Miconazole Nitrate Vaginal Cream and Suppository between Johnson & Johnson and Perrigo was dismissed. Following FDA approval, Perrigo will begin marketing its product under store brand and value brand labels to its customers. Monistat® -1 has annual retail sales of approximately $80 million. Upon receiving final regulatory approval, Perrigo expects to launch this product with 180 day first-to-file exclusivity.

Rx Pharmaceuticals

The Rx Pharmaceutical segment net sales were $33.2 million compared with $35.0 million a year ago. Operating income was $1.8 million, compared with $7.4 million last year. This year's results included service and royalty revenues of $1.6 million down from $5.8 million last year.

On September 8, the Company announced that it acquired the exclusive rights to sell and distribute Levocetirizine tablets, the generic version of UCB's Xyzal® tablets, from Synthon Pharmaceuticals, Inc. Synthon believes it has a first to file Abbreviated New Drug Application (ANDA) that will entitle it to 180 days of generic exclusivity upon approval. Synthon and UCB are currently engaged in Paragraph IV/Hatch-Waxman litigation over the Synthon ANDA filing. Xyzal® is indicated for the treatment of indoor and outdoor allergies. It is estimated that it has annual sales of approximately $200 million growing at 15% per year, according to data provided by Wolters, Kluwer.


The API segment reported net sales of $34.2 million compared with $38.8 million a year ago, reflecting lower sales in several key products. Operating income was $0.4 million, compared with $7.3 million last year, reflecting lower sales volume, an unfavorable sales mix and higher production costs.


The Other category, consisting of Israel Consumer Products and Israel Pharmaceutical and Diagnostic Products segments, reported net sales of $46.6 million, compared with $40.7 million a year ago. Operating income was $1.2 million, compared with $2.6 million last year.

Unallocated Expenses

In the fiscal 2009 first quarter, unallocated expenses were $3.9 million compared with $0.7 million a year ago. The increase was due primarily to the absence this year of a favorable legal settlement in the first quarter last year.

Perrigo's Chairman and CEO Joseph C. Papa concluded, "We are truly in the right place at the right time. I am very pleased with the momentum we have built and our strong balance sheet. We are confident in our ability to generate strong operating cash flow in the remainder of the year as seasonal inventory builds are sold through. Given our strong start to the year and our recent acquisitions, we are increasing our full year earnings guidance. We are now estimating adjusted earnings between $1.92 and $2.00 per share, excluding the $0.6 million loss on the exchange of property in the UK. Reported earnings per share are expected to be between $1.91 and $1.99 per share. 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 2009 first quarter results at 10:00 a.m. (ET) on Thursday, November 6. The conference call will be available live via web cast to interested parties on the Perrigo website or by phone 888-694-4676, International 404-665-9919, and reference ID# 70124252. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Thursday, November 6, until midnight Friday, November 14, 2008. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 70124252.

Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes 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 (

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 28, 2008, 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
                 (in thousands, except per share amounts)

                                            First Quarter
                                        2009              2008

  Net sales                           $480,236          $382,740
  Cost of sales                        336,021           265,469
  Gross profit                         144,215           117,271

  Operating expenses
     Distribution                        7,969             7,074
     Research and development           18,224            16,320
     Selling and administration         59,341            47,218
       Total                            85,534            70,612

  Operating income                      58,681            46,659
  Interest, net                          5,846             4,655
  Other (income) expense, net              115              (573)

  Income before income taxes            52,720            42,577
  Income tax expense                    14,762             8,558

  Net income                           $37,958           $34,019

  Earnings per share
     Basic                               $0.41             $0.37
     Diluted                             $0.40             $0.36

  Weighted average shares outstanding
     Basic                              92,787            93,142
     Diluted                            94,568            94,884

  Dividends declared per share          $0.050            $0.045

                             PERRIGO COMPANY
                              (in thousands)

                                        September 27, June 28, September 29,
                                            2008        2008        2007
  Assets                                 (unaudited)             (unaudited)
  Current assets
     Cash and cash equivalents             $249,328    $318,604     $46,837
     Investment securities                       14         560      32,487
     Accounts receivable, net               340,138     350,272     283,443
     Inventories                            448,386     399,972     314,597
     Current deferred income taxes           44,477      43,342      41,372
     Income taxes refundable                    468       6,883       5,596
     Prepaid expenses and other
      current assets                         25,863      37,226      23,010
            Total current assets          1,108,674   1,156,859     747,342

  Property and equipment                    747,235     745,840     665,239
     Less accumulated depreciation         (381,468)   (388,945)   (343,033)
                                            365,767     356,895     322,206

  Restricted cash                           400,000     400,000     400,000
  Goodwill                                  262,195     282,417     199,730
  Other intangible assets                   223,460     229,327     187,467
  Non-current deferred income taxes          63,130      74,737      49,184
  Other non-current assets                   70,145      74,842      40,723
                                         $2,493,371  $2,575,077  $1,946,652

  Liabilities and Shareholders' Equity
  Current liabilities
     Accounts payable                      $270,614    $253,307    $170,639
     Notes payable                              -           -        11,677
     Payroll and related taxes               51,506      77,140      38,425
     Accrued customer programs               50,025      53,668      48,638
     Accrued liabilities                     52,703      56,958      44,142
     Current deferred income taxes           18,839      24,493      15,214
     Current portion of long-term debt       21,163      20,095      15,314
            Total current liabilities       464,850     485,661     344,049

  Non-current liabilities
     Long-term debt                         893,433     895,095     642,629
     Non-current deferred income taxes      130,234     139,212     101,424
     Other non-current liabilities          116,596     121,394      87,324
            Total non-current liabilities 1,140,263   1,155,701     831,377

  Shareholders' equity
     Preferred stock, without par value,
      10,000 shares authorized                  -           -           -
     Common stock, without par value,
      200,000 shares authorized             468,798     488,537     521,117
     Accumulated other comprehensive
      income                                 96,167     155,184      47,864
     Retained earnings                      323,293     289,994     202,245
            Total shareholders' equity      888,258     933,715     771,226
                                         $2,493,371  $2,575,077  $1,946,652

  Supplemental Disclosures of Balance
   Sheet Information
     Allowance for doubtful accounts         $9,531      $9,931      $8,622
     Working capital                       $643,824    $671,198    $403,293
     Preferred stock, shares issued             -           -           -
     Common stock, shares issued             92,891      93,311      93,566

                             PERRIGO COMPANY
                              (in thousands)

                                                      First Quarter
                                                  2009             2008
   Cash Flows (For) From Operating Activities
      Net income                                 $37,958          $34,019
      Adjustments to derive cash flows
         Depreciation and amortization            16,767           15,570
         Share-based compensation                  2,754            1,958
         Income tax benefit from
          exercise of stock options                  345              705
         Excess tax benefit of stock
          transactions                            (1,685)            (570)
         Deferred income taxes                   (13,677)             710
      Sub-total                                   42,462           52,392

      Changes in operating assets and
       liabilities, net of asset and business
       acquisitions and restructuring
         Accounts receivable                      15,669           (3,389)
         Inventories                             (40,317)         (21,356)
         Income taxes refundable                    (468)          (6,883)
         Accounts payable                          7,259            7,665
         Payroll and related taxes               (29,037)          (7,437)
         Accrued customer programs                (3,643)             420
         Accrued liabilities                      (4,471)          (3,584)
         Accrued income taxes                      6,228            9,729
         Other                                     7,285             (563)
      Sub-total                                  (41,495)         (25,398)
            Net cash from operating activities       967           26,994

   Cash Flows (For) From Investing
      Purchase of securities                         -            (73,418)
      Proceeds from sales of securities              -             89,182
      Cash acquired in asset exchange              2,115              -
      Acquisition of business, net of
       cash acquired                             (14,839)             -
      Acquisition of intangible assets            (1,000)         (12,401)
      Additions to property and equipment         (5,913)          (4,364)
            Net cash for investing activities    (19,637)          (1,001)

   Cash Flows (For) From Financing Activities
      Repayments of short-term debt, net         (11,006)             (99)
      Borrowings of long-term debt                   -             30,000
      Repayments of long-term debt               (14,287)         (38,000)
      Excess tax benefit of stock transactions     1,685              570
      Issuance of common stock                     5,481            4,155
      Repurchase of common stock                 (29,314)          (4,280)
      Cash dividends                              (4,659)          (4,214)
            Net cash for financing activities    (52,100)         (11,868)

           Net increase (decrease) in
            cash and cash equivalents            (70,770)          14,125
   Cash and cash equivalents, at
    beginning of period                          318,604           30,305
   Effect of exchange rate changes on cash         1,494            2,407
   Cash and cash equivalents, at end
    of period                                   $249,328          $46,837

   Supplemental Disclosures of Cash
    Flow Information
      Cash paid/received during the period for:
         Interest paid                            $9,860          $11,254
         Interest received                        $7,209           $5,189
         Income taxes paid                       $12,050           $3,612
         Income taxes refunded                    $1,016           $1,003

                                 Table I
                             PERRIGO COMPANY
                           SEGMENT INFORMATION
                              (in thousands)

                                                       First Quarter
                                                  2009              2008
  Segment Sales
    Consumer Healthcare                         $366,202          $268,259
    Rx Pharmaceuticals                            33,175            34,960
    API                                           34,243            38,814
    Other                                         46,616            40,707
              Total                             $480,236          $382,740

  Segment Operating Income (Loss)
    Consumer Healthcare                          $59,115           $30,018
    Rx Pharmaceuticals                             1,784             7,445
    API                                              435             7,276
    Other                                          1,249             2,630
    Unallocated expenses                          (3,902)             (710)
              Total                              $58,681           $46,659

                                 Table II
                             PERRIGO COMPANY
                 (in thousands, except per share amounts)

                                                    First Quarter
                                                  2009          2008

  Net sales                                     $480,236      $382,740

  Reported operating income                      $58,681       $46,659
    Loss on asset exchange                           639           -
  Adjusted operating income                      $59,320       $46,659
  Adjusted operating income %                      12.4%         12.2%

  Reported net income                            $37,958       $34,019
    Loss on asset exchange (1)                       639           -
  Adjusted net income                            $38,597       $34,019

  Diluted earnings per share
    Reported                                       $0.40         $0.36
    Adjusted                                       $0.41         $0.36

  Diluted weighted average shares outstanding     94,568        94,884

  (1) No tax impact

                           Table II (Continued)
                           REPORTABLE SEGMENTS
                 (in thousands, except per share amounts)

                                                  First Quarter
                                              2009              2008
  Consumer Healthcare
  Net sales                                 $366,202          $268,259

  Reported operating expenses                $50,192           $42,338
    Loss on asset exchange                      (639)              -
  Adjusted operating expenses                $49,553           $42,338
  Adjusted operating expenses %                13.5%             15.8%

  Reported operating income                  $59,115           $30,018
    Loss on asset exchange                       639               -
  Adjusted operating income                  $59,754           $30,018
  Adjusted operating income %                  16.3%             11.2%

                                Table III
                              2009 GUIDANCE

                                                   Full Year
                                              Fiscal 2009 Guidance

  Reported earnings per share range             $1.91 - $1.99
    Loss on asset exchange                          $0.007
    Charge associated with
     inventory step-up                               $0.002
  Adjusted earnings per share range             $1.92 - $2.00

First Call Analyst:
FCMN Contact:

SOURCE: Perrigo Company

CONTACT: Arthur J. Shannon, Vice President, Investor Relations and
Communication, +1-269-686-1709,

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