Perrigo Company PLC
SWB:PIG
Perrigo Company PLC
Perrigo Company PLC, a stalwart in the pharmaceutical and healthcare sectors, has carved a niche by specializing in over-the-counter (OTC) health and wellness products. This Dublin-based company traces its origins back to 1887, in Allegan, Michigan, where it began as a modest packager of home remedies. Over the decades, Perrigo has evolved into a global powerhouse that provides affordable and quality healthcare products, distributing them across various markets around the world. Its strategy hinges on delivering effective OTC solutions and a wide array of consumer self-care products, making it a familiar presence in households seeking reliable alternatives to more expensive brand-name pharmaceuticals.
Perrigo's business model is centered on offering value to both consumers and retailers. By producing generic versions of well-known drugs, it captures a significant share of the market driven by cost-conscious customers. This approach also involves collaborating with retail giants to supply their private label OTC medications, a mutually beneficial arrangement that allows retailers to offer lower-cost alternatives under their own brands while maintaining healthy margins. Beyond just OTC medications, Perrigo has expanded its offerings to include nutritional products and topical solutions, further diversifying its portfolio and revenue streams. The company's consistent investment in innovation and keen attention to regulatory compliance underscore its commitment to quality and safety, attributes that resonate well in an industry guided by trust and efficacy.
Perrigo Company PLC, a stalwart in the pharmaceutical and healthcare sectors, has carved a niche by specializing in over-the-counter (OTC) health and wellness products. This Dublin-based company traces its origins back to 1887, in Allegan, Michigan, where it began as a modest packager of home remedies. Over the decades, Perrigo has evolved into a global powerhouse that provides affordable and quality healthcare products, distributing them across various markets around the world. Its strategy hinges on delivering effective OTC solutions and a wide array of consumer self-care products, making it a familiar presence in households seeking reliable alternatives to more expensive brand-name pharmaceuticals.
Perrigo's business model is centered on offering value to both consumers and retailers. By producing generic versions of well-known drugs, it captures a significant share of the market driven by cost-conscious customers. This approach also involves collaborating with retail giants to supply their private label OTC medications, a mutually beneficial arrangement that allows retailers to offer lower-cost alternatives under their own brands while maintaining healthy margins. Beyond just OTC medications, Perrigo has expanded its offerings to include nutritional products and topical solutions, further diversifying its portfolio and revenue streams. The company's consistent investment in innovation and keen attention to regulatory compliance underscore its commitment to quality and safety, attributes that resonate well in an industry guided by trust and efficacy.
EPS Inline: Perrigo delivered 2025 EPS of $2.75, in line with revised guidance, despite a challenging OTC market and soft consumption.
Share Gains: The company reported strong and accelerating market share gains across key categories in both the US and Europe during 2025.
Cost Savings: Operational initiatives, including Project Energize, led to $320 million in benefits, supporting operating income and EPS growth.
2026 Guidance: 2026 is expected to be a transition year, with core organic net sales guidance of -3.5% to +0.5% and core EPS outlook of $2.25–$2.55.
Margin Pressures: Temporary cost headwinds, especially plant under-absorption, are expected to weigh on margins and EPS by about $0.60 per share in 2026.
Restructuring: A new 2-year operational enhancement program is launching, aiming for $80–$100 million in annualized savings, including a 7% global workforce reduction.
Leverage & Liquidity: Net leverage ended 2025 at 4x, with an expectation to remain flat or slightly improve in 2026, aided by proceeds from the Dermacosmetics sale.
Infant Formula Review: The company continues its strategic review of the infant formula business, with an eye on optimizing operations, partnerships, or potential divestiture.
