Perrigo
Perrigo Company plc is an Irish-domiciled multinational corporation that develops, manufactures, and markets over-the-counter (OTC) consumer self-care products, including private-label pharmaceuticals, nutritional products, and infant formulas.[1][2]
Founded in 1887 in Allegan, Michigan, by brothers Luther and Charles Perrigo as a general store, the company expanded into manufacturing in the early 20th century and became a pioneer in store-brand OTC medications, growing to serve as the largest U.S. provider of such products and a top-10 player in the European consumer self-care market.[3][4][5]
Perrigo's business model emphasizes affordable, high-quality alternatives to branded products, with operations spanning North America, Europe, and other regions, supported by a portfolio of facilities focused on self-managed health solutions.[6][2]
The company has encountered regulatory challenges, including U.S. Food and Drug Administration warnings for manufacturing lapses at its Michigan facility leading to drug mix-ups, as well as antitrust litigation alleging anticompetitive agreements in the infant formula sector.[7][8]
History
Founding and Early Development (1887–1980s)
L. Perrigo Company was founded in 1887 in Allegan, Michigan, by brothers Luther and Charles Perrigo, who had relocated from New York a few years earlier.[9][10] Luther, operating a general store and apple-drying business, began packaging generic home remedies—such as epsom salts, sweet oil, and bay rum—along with patented medicines, for distribution to other rural general stores to build customer loyalty through private labeling.[3][9] This initial model focused on repackaging affordable household health products rather than branded manufacturing.[10] The company was formally incorporated in 1892 as L. Perrigo Company, with Luther Perrigo serving as its first president; it remained family-owned for the next 90 years, with five of the first seven presidents being Perrigo descendants.[9][10] In the 1920s, Perrigo expanded into private-label imprinting, customizing labels with individual store names on products like aspirin.[9] By 1921, it established its first manufacturing facility in Allegan, enabling in-house production beyond mere repackaging.[3] During the 1930s, Perrigo shifted its customer base from independent general stores to larger regional and national drug chains, including early clients like the K & W group and Sam's, and secured its first major private-label contract in the mid-decade, solidifying its role in affordable healthcare supply.[3][9] Post-World War II, under leadership including Ray Perrigo and William L. Tripp Sr. in the 1950s, the company transitioned from repackaging to full-scale manufacturing of quality drugs and beauty aids, emphasizing store-brand over-the-counter products.[10][9] In the 1960s and 1970s, Perrigo broadened its market to include grocery chains and mass merchandisers; William L. Tripp Jr. led significant growth from 1967 onward, quadrupling income and employee numbers by 1969 under his father's earlier influence.[10] By 1978, under president Robert J. Swaney, sales tripled through acquisitions of smaller firms and expanded distribution, positioning Perrigo as the nation's largest private-label manufacturer of health and beauty products by 1980.[9][10] The Perrigo family divested ownership to company management in the early 1980s after nearly a century of control, with Michael Jandernoa assuming the presidency in 1984 amid ongoing focus on over-the-counter generics.[9]Expansion Through Acquisitions (1990s–2010s)
In the 1990s, Perrigo shifted focus toward vertical integration and diversification by acquiring manufacturers of store-brand personal care and pharmaceutical products, aiming to bolster domestic production capacity and eliminate key competitors.[9] In January 1992, the company purchased Cumberland-Swan, Inc., a Tennessee-based producer of store-brand personal care items and vitamins, for $35 million, which expanded its contract manufacturing services.[9] This was followed in December 1994 by the $33 million acquisition of Vi-Jon Laboratories, Inc., a leading U.S. maker of private-label personal care products, further strengthening Perrigo's position in that segment.[9] International expansion accelerated in the late 1990s, with Perrigo targeting emerging markets for OTC pharmaceuticals. In late 1997, it acquired an 88% stake in Química y Farmacia, S.A. de C.V. (Quífa), a Mexican manufacturer of over-the-counter (OTC) and prescription drugs, for $17 million, gaining non-U.S. manufacturing facilities and entry into Latin American distribution channels.[9] By 2001, Perrigo entered the European market through the $44 million purchase of Wrafton Laboratories Ltd. in the United Kingdom, a supplier of store-brand pharmaceuticals to grocery and drug retailers, which established production capabilities for UK private-label needs.[9] The 2000s saw continued acquisitions to deepen category expertise and geographic reach, particularly in OTC and nutritional products. In 2005, Perrigo acquired Agis Industries Ltd., an Israeli firm involved in active pharmaceutical ingredient (API) development, pharmaceutical manufacturing, and medical diagnostics, enhancing its technical capabilities in specialty areas.[4] In 2008, the company bought Galpharm Healthcare, Ltd., a UK-based producer of OTC store-brand items, which reinforced its supermarket and pharmacy distribution in Europe.[4] A pivotal deal in the early 2010s was the March 2010 acquisition of PBM Holdings, Inc., for $808 million in cash, making Perrigo the dominant player in store-brand infant formula and baby foods across the United States, Canada, Mexico, and China, with added manufacturing assets in Vermont and Georgia.[11] These moves from the 1990s through the 2010s diversified Perrigo's portfolio beyond basic generics into higher-margin categories like infant nutrition and international OTC, while building a global supply network that supported store-brand growth amid rising retailer demand.[3]Tax Inversion, Restructuring, and Divestitures (2010s–2020s)
In July 2013, Perrigo announced its acquisition of Elan Corporation plc, an Irish biotechnology firm, for approximately $8.6 billion in a cash-and-stock deal, which was structured as a tax inversion to relocate the company's tax domicile from the United States to Ireland.[12][13] The transaction, completed on December 18, 2013, reduced Perrigo's effective corporate tax rate on certain profits from the U.S. statutory rate of 35% to Ireland's 12.5%, while establishing a new holding company in Dublin.[14][15] This move was part of a broader strategy among U.S.-based multinationals to access trapped foreign earnings and optimize global tax liabilities amid high domestic rates.[16] The inversion faced subsequent challenges, including a 2018 assessment by Irish tax authorities demanding €1.6 billion ($1.8 billion) in back taxes related to the Elan integration and profit allocations, which Perrigo contested as undermining the deal's intended benefits.[17][18] In 2015, Mylan N.V. launched a hostile $26 billion takeover bid for Perrigo, aiming to leverage its Irish domicile for further tax efficiencies, but Perrigo's board rejected the offer, citing undervaluation and strategic misalignment.[19] These events highlighted risks of inversion strategies, including regulatory scrutiny and shareholder activism, though Perrigo retained its Irish headquarters. Amid post-inversion integration pressures and shifting market dynamics, Perrigo pursued restructurings in the late 2010s, including sales force realignments, brand portfolio prioritization, and manufacturing insourcing to cut costs and enhance efficiency.[20] By the 2020s, the company accelerated divestitures of non-core assets to refocus on consumer self-care products: in June 2020, it sold its UK-based Rosemont Pharmaceuticals generic prescription business for £120 million ($156 million); in July 2024, it divested the HRA Pharma Rare Diseases unit to Esteve for up to €335 million in total consideration; and in July 2025, it agreed to sell its European dermacosmetics business to a KKR-managed entity for up to €327 million.[21][22][23] These actions supported Perrigo's "Optimize and Accelerate" strategic plan launched in February 2023, which emphasized portfolio streamlining, operational agility, and growth in over-the-counter segments, alongside a July 2025 organizational update involving category realignments and cost optimizations to counter competitive pressures.[24][25] The divestitures generated capital for reinvestment, though they incurred restructuring charges, reflecting a shift from diversified pharmaceuticals toward higher-margin, consumer-oriented operations.[26][27]Business Operations
Current Segments
Perrigo Company plc operates primarily through two business segments: Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). These segments focus on the development, manufacturing, marketing, and distribution of over-the-counter (OTC) consumer self-care products, emphasizing private-label offerings for retailers. In fiscal year 2024, the company's total net sales from continuing operations reached $4.37 billion, with CSCA generating the majority of revenue through sales in the U.S. and other Americas markets.[28] The Consumer Self-Care Americas (CSCA) segment encompasses Perrigo's core operations in North and Latin America, where it produces a wide range of private-label OTC products including cough and cold remedies, analgesics, digestive health aids, oral care items, and vitamins and supplements. This segment leverages 11 U.S.-based manufacturing facilities, which account for approximately 85% of Perrigo's domestic OTC production volume, positioning the company as the largest U.S. manufacturer of such products by volume. Key categories driving CSCA performance include upper respiratory, nutrition, and healthy lifestyle products, though challenges such as declines in digestive health sales have impacted growth.[30][28][6] The Consumer Self-Care International (CSCI) segment handles operations outside the Americas, primarily in Europe and other international markets, distributing similar private-label self-care products tailored to regional needs, such as skincare, hair care, and infant nutrition. This segment benefits from Perrigo's global supply chain but faces currency fluctuations and varying regulatory environments. In recent quarters, CSCI has shown resilience amid divestitures of non-core assets, contributing to overall portfolio optimization.[31][28] Following strategic divestitures, including the sale of its prescription pharmaceuticals business, Perrigo has streamlined its focus exclusively on these self-care segments to enhance operational efficiency and profitability. This restructuring, completed in the early 2020s, has allowed greater emphasis on high-margin OTC categories amid rising consumer demand for affordable, store-brand alternatives.[28][32]Products and Market Focus
Perrigo specializes in the development, manufacturing, and distribution of consumer self-care products, emphasizing over-the-counter (OTC) solutions for health and wellness. The company's portfolio centers on affordable, high-quality private label and branded items that address common self-managed conditions, including cough and cold remedies, analgesics, gastrointestinal aids, and nutritional supplements.[33] This focus stems from a strategic shift toward core self-care categories, following divestitures of non-core assets to enhance margins and growth potential.[34] Perrigo operates through two primary reporting segments: Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). The CSCA segment, covering the United States, Mexico, and Canada, primarily produces private label products for retailers, including cough, cold, and allergy treatments; analgesics; gastrointestinal products; smoking cessation aids; infant formula; and select food items.[6] In contrast, the CSCI segment targets international markets, particularly Europe, with branded offerings such as natural health products, vitamins, personal care items, derma-therapeutics, and lifestyle solutions alongside similar OTC categories like cough and cold remedies and smoking cessation products.[6] These segments collectively generate thousands of stock-keeping units (SKUs) in liquid, solid, and semi-solid forms, supported by extensive research and development to meet regional consumer needs.[6] The company's market emphasis lies in providing accessible self-care alternatives to branded pharmaceuticals, prioritizing cost-effectiveness without compromising efficacy or safety. In the Americas, private label dominance allows Perrigo to capture significant share in retailer channels, while in Europe and beyond—including Asia and Australia—branded products build consumer loyalty through established trademarks.[33] Recent performance highlights growth in key areas like nutrition, upper respiratory treatments, and healthy lifestyle products, offsetting declines in digestive health, as reported in second-quarter 2025 results.[35] Perrigo's supply chain expertise enables scalable production, with facilities inspected to regulatory standards, ensuring broad availability at pharmacies, retailers, and e-commerce platforms.[6]Global Operations and Supply Chain
Perrigo operates a network of manufacturing facilities concentrated in North America and Europe, supporting its production of over-the-counter (OTC) medications, infant formulas, and nutritional products. In the United States, the company's primary hub is in Allegan, Michigan, where it established its first manufacturing plant in 1921 and maintains multiple sites, including Plant 6 at 502 Eastern Avenue, focused on consumer healthcare goods. Additional U.S. facilities include sites in Vermont, Ohio, and Wisconsin for nutrition manufacturing, enabling efficient domestic supply for store-brand products. Historically, Perrigo operated a nutritional supplement facility in Greenville, South Carolina, which achieved NSF registration for quality standards in 2002.[3][36][37][38][39] In Europe, Perrigo's footprint includes several sites in the United Kingdom and Ireland, such as Barnsley in South Yorkshire, Braunton in North Devon, Leeds in West Yorkshire, Pimlico in London, and Dublin, positioning it as a top-10 player in the European consumer self-care market. The company also maintains regional operations in Belgium (in Dutch and French) and Australia, facilitating distribution across international markets. This geographic spread supports Perrigo's role as the largest U.S. provider of store-brand OTC and infant formula products while extending reach into global self-care segments.[40][5][2] Perrigo's supply chain strategy emphasizes optimization and resilience, integrated into its 2023-launched "Optimize and Accelerate" three-year plan, which targets 3% annual organic net sales growth, 5% adjusted operating income growth, and enhanced efficiency through supply chain reinvention. Leadership transitioned in June 2025 with the appointment of Matt Winterman as Executive Vice President of Global Operations and Supply Chain, succeeding Ron Janish after his retirement on September 30, 2025; Winterman, formerly SVP of Global Supply Chain at AstraZeneca, brings over 20 years of experience managing complex portfolios including 5,000 SKUs. The strategy addresses challenges like logistics disruptions and inflation, with a focus on network redesign led by roles such as Senior Director of Supply Chain Network Strategy in Dublin.[24][41][42][43] Sustainability forms a core element of Perrigo's supply chain management, with commitments to net-zero greenhouse gas emissions across operations and the full supply chain by 2040, including Scope 1, 2, and 3 reductions. Membership in the Pharmaceutical Supply Chain Initiative (PSCI) provides tools for global risk mitigation, ethical sourcing, and environmental protection, amid efforts to quantify supply chain climate impacts through retailer partnerships. These initiatives aim to ensure fair labor, reduce environmental footprints, and build resilience against disruptions like those experienced in U.S. logistics post-2020.[44][45][46][47]Leadership and Governance
Executive Team
Perrigo Company plc's executive management team, as outlined on the company's official website, is responsible for overseeing strategic direction, operations, and key functional areas in the consumer self-care products sector.[48] The team is led by Patrick Lockwood-Taylor, who has served as President and Chief Executive Officer since June 30, 2023.[49] Key members include:| Name | Position | Key Details |
|---|---|---|
| Charles Atkinson | Executive Vice President, General Counsel and Secretary | Oversees legal affairs and corporate governance. |
| David Ball | Executive Vice President, Chief Brand and Digital Officer | Manages branding, marketing, and digital initiatives. |
| Eduardo Bezerra | Executive Vice President and Chief Financial Officer | Handles financial planning, reporting, and investor relations. |
| Roberto Khoury | Executive Vice President and Chief Commercial Officer | Directs global commercial strategy and sales. |
| Abbie Lennox | Executive Vice President and Chief Scientific Officer | Appointed in January 2025; focuses on scientific research and product development.[50] |
| Rob Willis | Executive Vice President and Chief Human Resources Officer | Leads HR strategy, talent management, and employee relations. |
| Matt Winterman | Executive Vice President, Product Supply, Operations Strategy and Transformation Officer | Appointed in June 2025 to succeed Ronald Janish upon his retirement on September 30, 2025; brings over 20 years of supply chain experience.[41] |