Perrigo Investor Powepoint - Full Presentation FINAL-FINAL

Quality, Affordable Healthcare Products

Perrigo Investor DayNew York, NY September 29, 2009

Quality, Affordable Healthcare Products2

Forward Looking StatementsCertain statements in this presentation 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 27, 2009, 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 presentation 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.


IntroductionJoseph C. Papa – Chairman & CEO


Agenda1. Introduction and Overview – Joe Papa, Chairman & CEO2. CHC Business Review – Jeff Needham, Senior VP, Commercial

Business Development3. Rx Business Review – Sharon Kochan, Executive VP, U.S. Generics4. API and PDI Business Review – Rafi Lebel, Executive VP and

President, Perrigo Israel5. Break with Q&A6. Global Operations Review – John Hendrickson, Executive VP, Global

Operations and Supply Chain7. Finance Review – Judy Brown, Executive VP and CFO8. Wrap-up and Q&A


Since September 2007Remains the same

• Mission: A global leader in quality, affordable healthcare

• Executive Team

• Focus on Five Pillars

• ROIC Based Decision Making

• Business Strategy


Business Strategy• A global, integrated health care products company

• Leader in Store Brand OTC/Nutrition and Generic Rx Topicals with unsurpassed Quality and Customer Service

• Specialty API with vertical integration opportunities

• Best in class innovation – developing, filing, and partnering to be first-to-market

• Top tier low-cost manufacturer

• Unleashing the power of our people


Since September 2007 – ContinuedChanges

• Transforming Perrigo – Move from a big small company to small big company

– $2 billion in sales

– Relentless focus on quality, process improvements and R&D

– New product launch success

• Decision to close Perrigo Germany API

• Decision to divest Israel Consumer Products

• Seven bolt-on acquisitions

• Leverage ORx opportunity


Quality• Over 12% of our 7,000+ global workforce works in quality• Over $60 million dollars were invested into quality during Fiscal 2009• Reductions in deviations due to improved quality processes have had a

direct and positive impact on our margins

DeviationsIndexed to 100

020406080

100120

2007 2008 2009

Deviations

38% reduction in deviations over 2 years


Customer Service• New initiatives and focused execution resulted in significant

improvements to customer service during fiscal 2009Customer Service Trend

July

Augus

tSep

tembe

rOcto

ber

Novembe

rDece

mber

Janu

aryFeb

ruary

March

April

May

June


Innovation• 35+ new products this year

– Polyethylene Glycol– Guaifenesin– Miconazole– 4 generic Rx products

• Channel innovation –Over-the-counter Rx (ORx)

• Rx-to-OTC switch products ($10 billion over the next 5 years)

– Proton pump inhibitors– Non-sedating antihistamines– Alli®


Low CostNew and ongoing initiatives• Global sourcing initiatives: Amending ANDA’s to include additional

suppliers providing increased pricing leverage• Vertical integration of Cetirizine• Lean Sigma Initiatives

– Nearly 400 Lean Sigma certified employees– Continued focus on incorporating and executing initiatives

• API transformation– Exit Germany– India manufacturing facility

• Leveraging existing manufacturing capacity – strong growth with limited plant expansion


People• Acquiring the best technical people on a global scale• Constant improvements to training and development• Voted “Best of the Best” places to work in West Michigan• Excellent safety record

Headcount by Location - FY09

Michigan 3,361 New York 437 South Carolina 425 Florida 197 Total US 4,420 Mexico 616 UK 496 Israel 1,695 Total 7,227

Global Department Summary

Global Department FY09

Quality 869 R&D 446 Finance 180 HR 91 IT 147

Total Global Departments 1,733


Macroeconomic Factors• Weak economy continues to drive consumers to the realization of the

store brand value proposition• Retailers focusing on store brands to drive sales and earnings• Healthcare reform - Quality, affordable healthcare is theme of the

current administration • Increased FDA scrutiny impacting competitors• Increased business development opportunities


Perrigo Competitive Advantage• Perrigo value proposition

– Marketing and promotional design and implementation that drive retailer and store brand penetration

– Label management – Perrigo supports retailers through regulatory changes • Topical Rx leadership

• Perrigo’s focus on new products– Numerous paragraph IV challenges; participated in 80% of products switched from

Rx to OTC – 31 ANDA’s currently filed and pending approval– ORx opportunities

• Perrigo has made the investment in critical mass operations and logistics– Over 44 billion tablets produced in fiscal 2009– Over 850 employees in Quality– Nearly 12,000 SKU’s – Cutting edge automation and packaging capabilities


Store Brand Acceptance

Source: “Store Brands and the Recession: What Happens When the Recovery Kicks In?”, PLMA Summer 2009

What Shoppers Will Do When the Recession Ends

Shoppers Who Will Keep Buying SB

91.0%

All Other Shoppers9.0%


Cough, Cold, Flu – Season Update• Early data on the current cough, cold, flu season shows nearly a 16%

increase season-to-date as compared to the same period last year• Leading indicator – Increased oral electrolyte solutions sales• Our current structure provides an additional 15% – 20% of capacity over

our forecasted expectations for product demand• Liquid products are bright stocked allowing for increased flexibility to

meet demand without significant inventory investment• Ultimately it is too early to forecast the season


Fiscal 2010 OutlookThe Right Company, in the Right Place, at the Right Time• Consumer Healthcare

– Omeprazole – Competitor is delayed coming to market– H1N1 outbreak– Vitamins

• Rx Pharmaceutical– Quality issues at competitors– ORx

• API– New products– Cost management


Global Consumer HealthcareJeff Needham, Senior VP, Commercial Business

Development


Perrigo Consumer Healthcare is Comprised of 6 Business Segments

Perrigo CHC Size By Segment - FY09

U.S. OTC, $1,160B

U.S. Contract, $92M

Canada, $14M

U.S. Nutrition, $194M

Mexico, $52M UK, $127M


Perrigo Consumer HealthcareU.S. OTC – U.S. Nutrition – U.S. Contract – Mexico – Canada - U.K.

Perrigo Michigan

• Employee: 2,721• Primarily OTC• Critical mass/scale• Production of 25B tablets a year• Mass customization• More than 11K SKUs

Perrigo Holland (MI)

• Employees: 375• Contract Manufacturing

for leading brands

Perrigo New York

• Employee: 411• Production of prescription and

OTC creams, ointments, liquid and suppository forms

• 315 CHC SKUs• 109 Prescription SKUs

Perrigo South Carolina

• Employee: 400• Production of vitamins• 250 in-house formulas• 3,000 finished packaged SKUs

Perrigo U.K.

• Employee: 490• Manufacturer of OTC product• Small packaging unit• Shipping & Receiving

Perrigo Mexico

• Employee: 489• Mexico’s Store Brand Leader• Manufacturer of OTC products• Packager of finished

pharmaceutical products

Perrigo Canada


Consumer HealthcareGlobal Sales of over $1.6 Billion and over 9,400 SKU’s

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Q1 Q2 Q3 Q4

FY'06FY'07FY'08FY'09

QUARTERLY PERFORMANCERevenue($ Mill)


Branded OTC75%

SB OTC25%

Perrigo competes in US categories with a total market size of nearly $30 billion

Perrigo Nutrition

25%Branded Nutrition

76%

SB Nutrition

24%

Store Brand Share of OTCs Perrigo Share of Store Brand OTCs

Store Brand Share of Nutrition Perrigo Share of Store Brand Nutrition

Perrigo OTCs70%

Market Size: $22.7B

Market Size: $7.3B


Perrigo Key Labels & Customers


The Magic of Store Brand


The Magic of Store Brands…Even More Magical Given Our Newer OTC Products…

59%Consumer Savings

$56%% Profit20%

$29.49$ Profit$14.32

$52.99Retail Price$71.59

$23.50Cost$57.27

Big Dollar Profit for Retailers


Magic of Store BrandsPerrigo Savings to Consumers 1994-2008

Savings to the Consumer

$0

$200

$400

$600

$800

$1,000

$1,200

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Perrigo has saved consumers over an estimated $10 billion dollars during the last 15 years

$’s in millions


Store Brands Drive Retailer Profit

0102030405060708090

Analgesics Cough/Cold Vitamins SmokingCessation

Sales ($) Vol (Units) Profit ($)

Perc

ent

Contribution of Store Brand to a Retailer’s Total Category


Consumer Healthcare Market & Share Growth

Averaged one percentage point market share increase per year

2008 Total OTC Sales Value at Retail approximated $23 Billion

Source: IRI and Perrigo Company Estimates

National Brand Store Brand

1990

90%

10%

75%

25%

2009


All Category Update – IRI FDMx & Perrigo

Source: IRI FDMx Thru June 7, 2009 and Perrigo SFA Through June FY09

1.5%

2.1%

1.5%

7.7%

-5.5%

-5.3%

-1.3%

-1.3%

-2.4%

8.1%

5.1%

26.9%

15.5%

6.9%

14.9%

-0.8%

0.6%

7.9%Nutrition

Smoking Cessation

Gastrointestinal

Cough, Cold,Allergy, Sinus

Analgesics

OTC

Category National Brand Store Brand52 Weeks


Two Recent Case Studies of SB New Product Success – Cetirizine & Omeprazole


Omeprazole: How to Successfully Gain Share Against an Established Brand

Background –• Prilosec OTC® was an established brand selling $750M

annually– 2003: Goes over the counter, with marketing “powerhouse” Procter &

Gamble– 2004: #1 OTC Heartburn Medicine– 2005: #1 Recommended doctor recommended acid reducer– 2006: #1 Recommended OTC by pharmacist recommended heartburn

medicine


Power of Perrigo – The OmeprazoleLaunch


Perrigo Omeprazole is a $325M Retail Brand, with a +40% SB Share Within the First Year!

4.1%

22.0%

27.5%

31.2%

34.7%

30.8%33.9%

35.8% 34.5%36.2%

39.4% 40.3%

36.7%38.4% 37.8%

41.3% 40.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

3/16/084/13/0

85/11/0

86/8/08

7/6/088/3/08

8/31/089/28/0

810/2

6/08

11/23/08

12/21/08

1/18/092/15/0

93/15/0

94/12/0

95/10/0

96/7/09

Volu

me

Shar

e

Source: IRI 4 Week Data Ending 06/7/09; FDMx

4 Weeks Ending Launch Weeks

Perrigo Store Brand Perrigo Store Brand OmeprazoleOmeprazole Volume Share Volume Share -- FDMxFDMx


Cetirizine: Store Brands Can Win When Launched Alongside a New Brand

Background –• Zyrtec® and Store Brand Cetirizine launched concurrently• Zyrtec® launched and supported by mega marketer Johnson &

Johnson• Store Brand Cetirizine launched and marketed by Perrigo


Perrigo Other

Power of Perrigo—The Cetirizine Launch

Brand Promotion Drives Store Brand Awareness

Bonus & EconomySizes

Print Ads

PharmacyIntroduction Kits

On-shelfsignage

Off-shelfDisplays

80%

20%

Store Brand Market Share


Results? Store Brand Cetirizine is a $150M Retail Business, Outselling the Brand

12.6%

27.0%

35.6%37.7% 38.5%

42.0%43.8% 42.6%

45.9% 46.0% 47.4% 47.3% 49.0% 50.0% 51.2%53.1%

49.4%53.2%

0%

10%

20%

30%

40%

50%

60%

2/17/083/16/08

4/13/085/11/086/8/08

7/6/088/3/08

8/31/089/28/08

10/26/08

11/23/08

12/21/08

1/18/092/15/09

3/15/094/12/09

5/10/096/7/09

Source: IRI 4 Week Data Ending 06/7/09; FDMx

Launch Weeks4 Weeks Ending

Store Brand Store Brand CetirizineCetirizine 10MG Volume Share 10MG Volume Share -- FDMxFDMx

Volu

me

Shar

e


“Keys to Success” of the Store Brand Business


Store Brand Expert• R&D product development• Regulatory• Quality/compliance• Low cost• Supply chain• Multiple formulas, packaging

configurations, case packs, customer labels, conversions

• Marketing• Drive SB share with display,

bonus sizes, pharmacy marketing, in-store advertising, circular advertising, package design, category management, consumer research

Store Brand Leadership• Perrigo helped to create the Store

Brand market in the 1980’s• Perrigo has greater product breadth

than any other company, including branded companies

• Perrigo has more OTC ANDA approvals (61) than any other company, including branded companies

• Perrigo has distribution and direct sales at every significant retailer

Why Perrigo is the Store Brand Leader?


Mass Customization – How One Brand Yields More than 475 Store Brands SKUs

1 Formula

10 Sizes 45 Promotional Configurations

51 Customer Unique Packages

17 Case Pack Combinations


Perrigo Marketing Expertise• First to market with new products• Best In Class Retail Marketing Programs• Consumer knowledge and insights• Recognized by our customers for our Category

Management skills


Best In Class Retail Marketing: Retailers Promoting Store Brand

CVS Walgreens Kroger Wal-Mart


Recent Growth Drivers


More Consumers are Purchasing Store Brands

Source: 2009 PLMA Consumer research report

% of ConsumersThat are Frequent SB Shoppers

55%

41%

12%

1991 2006 2008


Perrigo Continues to Gain Store Brand Share in U.S. categories

Perrigo Share of Store Brand OTC - 2009

Perrigo70%

Perrigo Share of Store Brand OTC - 2006

Perrigo65%

Competition

35%

Competition

30%


International Sales Have Grown As Well

70.0%

46.1%

70.3%

53.6%

Mexico U.K. Canada Total

Perrigo CHC International Sales Growth Since 2006


Perrigo is the Switch LeaderPerrigo has participated in 80% of the drugs

that have switched from Rx to OTC1976 Brompheniramine maleate (Dimetane) 1976 Chlorpheniramine maleate (Contac)1976 Oxymetazoline HCl (Afrin)1976 Pseudoephedrine HCl (Sudafed)1978 Doxylamine succinate (Unisom)1979 Hydrocortisone 0.25-05% (Cortaid) 1980 Ephedrine sulfate 1-1.25% – topical (Pazo Ointment)1980 Epinephrine HCl 0.005–0.01% - topical 1981 Phenlyephrine HCl 0.25% - topical1981 Chlorphenaramine maleate (Triaminic)1981 Phenylpropanolamine HCl (Triaminic)1981 Diphenhydramine HCl (Benylin)1982 Haloprogin – topical1982 Miconazole nitrate (Micatin)1982 Diphenhydramine HCl (Sominex)1982 Diphenhydramine monocitrate (Excedrin PM)1982 Dyclonine HCl (Sucrets)1982 Dexbrompheniramine maleate (Drixoral)1982 Pseudoephedrine sulfate 120mg (Afrinol)1982 Triprolidine HCl (Actifed)1984 Ibuprofen (Advil)1985 Diphenhydramine HCl (Benadryl 25)1985 Pseudoephedrine HCl 120mg (Actifed)1986 Oxymetazaline HCl (Occuclear)1987 Doxylamine succinate (Nyquil)1987 Dexbrompheniramine maleate (Drixoral)1988 Loperamide (Imodium AD)1989 Clotrimazole (Lotrimin AF)1990 Permethrin (Nix)1990 Clotrimazole (Gyne-Lotrimin)

1991 Miconazole nitrate (Monistat 7)1992 Clemastine fumarate (Tavist)1994 Naproxen sodium (Aleve)1994 Pheniramine maleate with naphazoline (Naphcon A)1994 Antazoline phosphate with naphazoline (Vasocon A)1995 Famotidine (Pepcid)1995 Ibuprofen suspension (Children’s Motrin)1995 Cimetidine (Tagamet)1995 Ranitidine (Zantac)1995 Ketoprofen (Orudis)1995 Butoconazole nitrate (Femstat 3)1996 Minoxidil (Rogaine)1996 Nicotine polacrilex (Nicorrette)1996 Nizatidine (Axid AR)1996 Minconazole nitrate (Monistat 3)1996 Nicotine transdermal (Nicoderm CQ)1997 Cromolyn Sodium (Nasalcrom)1997 Tioconazole (Vagistat -1)1997 Ketoconazole (Nizoral)1999 Terbinafine HCl cream (Lamisil AT)2001 Butenafine (Lotrimin Ultra)2002 Guaifenesin ER (Mucinex)2002 Loratadine (Claritin)2002 Loratadine pseudoephedrine sulfate (Claritin D)2003 Omeprazole magnesium (Prilosec)2006 Ketotifen Fumerate (Zaditor)2006 Levonorgestrel (Plan B)2007 Polyethylene glycol 3350 (Miralax)2007 Cetirizine HCl (Zyrtec)2007 Cetirizine pseudoephedrine (Zyrtec D)2009 Lansoprazole (Prevacid)

Red = Perrigo participation

Perrigo has more OTC ANDAs then any other company


Perrigo has Made Key Strategic Acquisitions

Laboratios Diba, S

.A.

(Diba)

Unico Holdings, Inc

J.B. Laboratories, In

c

(JBL)

Brunel Health

care Ltd.

(Brunel)

GalpharmHealth

care

Ltd.

January 2008

June2008

September2008

October2008

November2008

Acquisitions have expanded Perrigo’s global presence and portfolio, while increasing capacity


Looking to the Future


A Number of Current Tailwinds Give Us Cause for Optimism…

• Strong major retailer focus driving stronger-than-average SB shares

Top-5 Perrigo U.S. Customers Growing Store Brand Share Faster than Total Marketplace

• 2009 Cough/Cold season showing strong start • Consumer sales of SB Omeprazole and NRT products continues to be very strong

Retailer commitment to promotional marketing activity is solid • New Products will again drive sales growth in FY ‘10

Expect to launch 30+ new products in US CHC this year Planned October P-E-G 3350 (Clear Lax) is next key Perrigo launch

• Our US Nutrition business continues to stabilize and strengthen – costs have stabilized

1.8 pts

2.6 pts

All Outlets Top 5 Customers

Store Brand Share Point Gain - Latest Year Dollars*

Source: Nielsen Panel 2009


National Status Map – Week Ending 9-19-09

Same week last season

The information, material and content contained in this report, including, without limitation, the format hereof, is confidential and proprietary to SDI and provided only for the use of each of its authorized customers in the ordinary course of its business. The information, material and content contained in this report, including, without limitation, the format hereof, may not be disclosed to any other person or entity or duplicated, made available, altered or used, in whole or in part, by any person or entity without the prior written consent of SDI. All information, material and content contained in this report are: Copyright © 2009 SDI Health LLC. All rights reserved.


We’re Well-Positioned in the Consumer Healthcare Marketplace…• Consumer and Retailer Commitment to “Quality, Affordable

Healthcare”

• We’re Growing Market Share Within the Store Brand Segment – and Within the Total Category

• Our Expertise in Mass Customization Makes Us Uniquely Focused –Breadth and Depth of Categories / Products

• Store Brand Expertise and Focus

• R&D Investment and Focus on ANDAs – A Catalyst for Growth

• Strong Customer Relationships – Retailers Look to Us for Sales and Profit Growth

• Opportunities for Global Growth – Expansion of the U.S. Model Globally


New Products Drive Growth


ANDAs Will Continue to Drive GrowthCategory National Brand

Branded Sales

Est. Launch Year

IBU K softgel Analgesic Advil Liquidgel 250$ 2009

Nico Lozenge - Cherry NRT Commit 28$ 2009

Polyethylene Glycol 3350 GI Miralax 167$ 2009

Nico Coated Gum - Cinnamon NRT Nicorrette 42$ 2009

Loperamide Simethicone Chew GI Imodium Adv. 13$ 2010

Guaifenesin ER CCAS Mucinex 176$ 2010

Miconazole Ovule Fem Hy Monistat 1 84$ 2010

Ketotifen Opthalmic Zaditor 15$ 2010

Near Term Opportunities 774$ ($Millions)

Project


Adjacent Category Opportunities will Expand Our U.S. Footprint

Categories Where Perrigo Competes,

$28.7

Diet Liqds/Powders, $0.9

Contraceptives, $0.7

Adult Incont., $1.3

Diagnostic Test Kits, $0.6

Family Planning, $0.5 Eye Care, $1.9

First Aid Accessories, $2.0

Sanitary Napkins/Tampons,

$2.9

Infant Nutrition, $5.9


Global OTC Market - 2008North America

26.5%

Western Europe 24.4%C & E Europe

6.8%

Indian Subcontinent

2.1%

E & SE Asia 14.3%

Japan 10.7%

ROWLatin

America 7.0%

Australasia 1.9%

Global OTC Market in 2008 was $86.6Billion (MSP) Global OTC Market in 2008 was $86.6Billion (MSP) with a CAGR of 4.3% (2004with a CAGR of 4.3% (2004--2008)2008)

*MSP, Nicholas Hall Study, June 2009


International Market Development

• Expand Perrigo’s global footprint into new countries and regions

• Grow from existing global CHC markets

• Grow from both organic and inorganic strategies


OTCs Via Rx is an Emerging Growth Market

ORx

Source: Wolters Kluwer Health – 2008 TRx Qty & Dollar

• Market set to double in the next 5-years!

• Rx PPI market sales over $23B in 2008

• ORx products offer almost 90% cost savings over higher priced Rx drugs

Rx

Rx Generic65%aa

OTCGeneric

27%

Rx Brand35%

OTC Brand73%

Generics“own” 65%

volumeshare ofthe RxMarket–BUT–

only 27%of the ORx

Market

$3.74

$1.41

$1.61

$4.68

Avg. Rx Cost/Tab

$.48

$.45

$.25

$.53

Avg. ORx Cost/Tab

$26.4BGrand Totals

$834MAntihistamine w/Decongestant

$2.49BAntihistamine

$23.1BPPI

Dollars


Perrigo CHC is Well Positioned to Drive Future Growth

Organic Store Brand Growth –

Consumers Continue to Embrace Store Brands

ANDA / New Product Pipeline

Expanded Global Footprint –New International Markets

Adjacent CategoriesAcquisitions

ORx

Perrigo Growth Platform


Rx Pharmaceuticals Sharon Kochan, Executive VP, U.S. Generics


Portfolio of extended topical and specialized prescription generic products predominantly for the US market

FY09 – Total sales $164 million, operating income $29 million

Investing over 10% of sales in R&D

Significant investment in quality – almost 10% of COGS for appraisal and prevention

Primary manufacturing and R&D facilities in NY, Israel and Michigan

More than 250 products marketed to over 100 customers in the USA

Rx Business Overview

Quality, Affordable Healthcare Products61 Source: WK Health (July 2009), Adjusted WAC Dollars (40%)

US Generic Market: Highly Fragmented

7.9% 7.2% 7.1%5.5%

3.7% 3.0% 2.8% 2.4% 2.2%

17.3%

8.1%

23.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

TEVA

MYLAN

SANDOZ WATS

ON APOTE

X DR. R

EDDY'S

GREENSTONE (P

fizer

)

MALLIN

CKRODT APP PHARMA

ACTAVIS

Nex

t 10 (

11-20

)Nex

t 10 (

21-30

)

Mar

ket S

hare

US Extended Topical Generic Market: $177

$160$152

$128

$101

$71 $69

$45 $44 $41

$0

$40

$80

$120

$160

$200

TEVA PERRIG

O FOUGERA

TARO

SANDOZ

ACTAVIS

GREENSTONE (Pfiz

er)MORTON G

ROVE

ROXANE

HI-TECH

Adj

uste

d W

AC

Dol

lars

($M

)

US Topical Generic Market: (Excluding Oral Liquids)$151 $151

$120

$54

$32$21 $17 $15 $15 $13

$0

$40

$80

$120

$160

PERRIGO

FOUGERA

TARO

TEVA

ACTAVIS

SANDOZ

GLAXOSMITHKLINE

BAUSCH & LOMB

APOTEX

OCEANSIDE PHARM

Adj

uste

d W

AC

Sal

es ($

M)

Key Players in the US Generic Market


Source: WK Health (July 2009), WAC Dollars

$ in Billions

Total US Brand Opportunities in the Extended Topical Space: $31.8B


Perrigo’s Five Pillars – An unwavering focusPortfolio and pipeline above and beyond standard generics

Maintain leadership in the extended topical space, including foams, nasal sprays, inhalers, patches and moreLeverage Perrigo’s OTC portfolio in the growing ORx/Managed Care marketStrive to be first-to-market or at generic market formation on majority of new product introductions

Aggressively pursue alliances and partnerships in the areas of product development, technology and distribution

Strategy


Rx-to-OTC Market LandscapeDoctors continue to trust and prescribe Rx-to-OTC products post switchVarious Health Plans and programs see the cost saving and other benefits OTCs provide its members

Perrigo’s ORx StrategySet-up and register generic OTCs for reimbursement through public and private health plansLeverage portfolio and pipeline of OTC products for generic substitution when appropriate

Perrigo Execution-to-DateAll Perrigo OTCs are registered for reimbursementSales efforts commenced in FY 09FY 09 sales over $25M

Generic OTCs Drive ‘ORx’


Topical LeadershipIdeally positioned to leverage Perrigo’s OTC portfolio and pipeline - ORxFavorable cGMP standing Proven ability to develop various sophisticated and challenging topical productsProficient at executing strategic alliances and acquisitions

Strengths


80%

80%

80%

49%

62%

34%

66%

52%

37%

51%

56%

Erythromycin Pledgets

Clindamycin Pledgets

Permethrin Cream

Erythromycin, Benzoyl Peroxide

Mesalamine Enema

Triamcinolone Cream/Oint

Ketoconazole Shampoo

Clobetasol Foam

Mupirocin Ointment

Mometasone Cream

Tretinoin Cream/Gel

Source: Wolters Kluwer Health July 2009 (units)

80%+

80%+

80%+

Key Products- Perrigo US Market Share


8 product launches in FY08:Clobetasol Propionate foam, Ciclopirox topical solution, Salicylic Acid cream, Salicylic Acid lotion, Cetirizine syrup, Cetirizine tablets, Cetrizine-D tablets, Omeprazole tablets

3 product launches in FY09: Salicylic Acid shampoo, Hydroquinone time release cream, Loratadinetablets

FY10:Already received approval for Triamcinolone Acetonide Nasal SprayLaunched Mesalamine Enema Kit (First generic)

Expecting 4 additional launches in FY2010

Approval Track Record


16 ANDAs are currently pending FDA approvalAnnual brand sales of approximately $2B7 confirmed first-to-file ANDAs (plus Triamcinolone Nasal Spray)Additional 5 first-to-market (most likely)

5 Products in Active Clinical Studies5 Ongoing P.IV Litigations:

Betamethasone Valerate 0.12% Foam (Luxiq®)Clindamycin 1% Foam (Evoclin®)Benzoyl Peroxide 5% / Clindamycin 1% Gel (Duac®)Levocetirizine Tablets (Xyzal®)Levocetirizine Syrup (Xyzal®)

2 Recent P.IV Litigation Settlements:Triamcinolone Nasal Spray (Nasacort AQ) *

• Date of certain launch: June 15, 2011Fluocinonide Cream (Vanos)

• Date of certain launch: December 15, 2013

*Partnership with Barr Laboratories/Teva

Quantitative Pipeline Snap Shot


AcquisitionsGlades Topical Portfolio

License inLevocetirizine Syrup and Tablets (generic to Xyzal®) First-To-File from SynthonBPO & Clinda Gel (generic to Duac®) First-To-File from KV

License OutCentany Ointment to Medimetriks PharmaceuticalsTopical development project for Medicis

Co-DevelopmentGeneric Foams with CobrekNasal Sprays with Teva / Barr

Distribution agreementsTretinoin cream & gel AGs

Business Development –Beyond Organic Growth


Seeking ROIC accretive transactions that:Enhance our leadership position in the extended topical space

Product line acquisitionsLicense in / Distribution arrangementsCo-developmentOutright acquisitions of topical players

Position Perrigo as a significant generic provider to further balance the Perrigo company portfolio

Acquisitions of specialized U.S. generic companies participating outside of extended topicalsDistribution agreements of First-to-File products

Business Development


Based on our current organic pipeline and secured agreements with 3rd parties, we are on track to:

Double our operating income in 2-3 years

Triple our operating income in 4-5 years

Positioned for Growth


Active Pharmaceutical Ingredients (API)Rafi Lebel, Executive VP and President, Perrigo Israel


API Business Overview• Perrigo is focused on complex API products• Products sold to Pharmaceutical companies in more than 25 countries• FY09 Sales to third parties $136M, Operating Income $15M• Perrigo quality; 24 successful cGMP audits including US FDA in China

and EU-IMOH in Israel in FY09• Growing vertical integration pipeline both in Israel and India to support

Perrigo’s CHC & Rx businesses• Cost of goods leverage utilizing significant market and product

knowledge• Recent actions to provide a more cost competitive platform and

opportunity for a broadened pipeline


Our Strategic Direction• Complex, high potency APIs

– Differentiation– Highly regulated markets– Intellectual Property– PIV opportunities

• Complete Solution– Customer Service– Vertical integration– Finished Dosage Form as line extensions to our API’s

• Global Operation - Moving towards a global transformation by establishing two centers of competence:

– Israel - Higher barrier to entry and gross margin products– India - Two facilities for drug intermediates and cGMP API’s in a low cost

environment


Global Presence – FY09 Sales by Region

North America25%

Israel4%

East Europe9%

West Europe52%

Latin America3%

Far East, Japan, Asia Pacific

7%

Manufacturing Site

Sales Subsidiary


Global API MarketTotal generic API sales of nearly $10 billion

$’s in billions

Perrigo Competition• Teva• Sun• Cipla• Sterling• Dr. Reddy

• Ranbaxy• Matrix (Mylan)• Polpharma• Dipharma• Esteve

• Farmhyspania• Grunenthal• Wockhardt

$2.9

$3.8$3.2North AmericaWestern EuropeAsia-Pacific


Commercial LandscapeTop Customers• Cephalon• Dr. Reddy (Betapharm)• Fresenius (APP)• Hi Tech• Mylan• Ratiopharm• Sandoz• Sanofi Aventis• Stada• Teva

Benzodiazepine antagonistFlumazenil

VasodilatorPentoxifylline

AntinarcolepticModafinilAntihypertensiveMoxonidine*

Non-sedative antihistamineCetirizine*

AntiepilepticLamotrigineAnestheticMidazolam

AntinauseateGranisetron*

Neuromuscular blockerRocuronium

AntihyperlipoproteinemicFenofibrate

AntiinflammatoryFluticasone

AnalgesicTramadol

* FDF Available

Anti Alzheimer, Cognition enhancerDonepezil*

Therapeutic UseAPITop Products

Moxonidine

Pentoxifylline

Tramadol

Midazolam

Rocuronium


FY10 Strategic Focus• Launch products with higher barriers to entry/gross margins • Collaborate with customers on unique high value projects • Optimize global manufacturing costs (Israel, Germany &

India)• Process improvements throughout the supply chain• Vertical Integration• Reduce our cost structure through quality and yield process

improvements


New Product PipelineNear Term – FY 10Cisatracurium (Nimbex®) Imiquimod* (Aldara®)Temozolomide* (Temodal®, Temodar®) Tioconazole* (Vagistat-1®) Dossiers sales

FY11 to FY14 (partial list)Anastrazole* (Arimidex®)Azacitidine (Vidaza®)Donepezil* - Japan (Aricept®)Exemestan* (Aromasin®)Fluticasone (new 2 NDA’s)Granisetron base (new NDA)Letrozole* (Femara®)Omeprazole Magnesium*FDF available

Therapeutic UseIntermediate duration neuromuscular blocking agent

Immune response modifier

Antineoplastic, alkylating agent

Anti vaginal candida infections

Aromatase inhibitor

Antineoplastic agent

Anti Alzheimer, Cognition enhancer

Steroidal aromatase inhibitor

Antiinflammatory

Antinauseate

Aromatase inhibitorDyspepsia, peptic ulcer disease, gastroesophagealreflux disease


Key Takeaways• Complex APIs in regulated markets offer higher margin profits• Perrigo is well positioned by having market leadership, high quality and

by being first to market• Reliable long term strategic partner for pharmaceutical companies• Global operations offer high quality products from low cost locations• Vertical integration will further increase future profitability


Pharmaceuticals & Diagnostics Israel (PDI)Rafi Lebel, Executive VP and President, Perrigo Israel


PDI Business Overview• Importing, manufacturing, marketing and selling branded Rx &

OTC pharmaceuticals, generic Rx, and diagnostics in Israel since1961

• Majority of sales derived from the sale of branded products to Israeli HMO’s, government and chains

• Supply chain partners: Solvay, Nycomed, Talecris, Schwarz Pharma, Siemens HealthCare Diagnostics (Siemens), Bayer Consumer Care, GSK, Bayer Schering Pharma (BSP), Sakura

• Diagnostic products include Lab Testing systems & kits, and point of care (POC) products like Glucose meters


Key Takeaways

• Leading Pharmaceutical & Diagnostics player in $1 billion Israeli market

• Increasing sales and operating income by launching new products developed by Perrigo & supply chain partners

• Leveraging Perrigo CHC portfolio in Israel • Leveraging the development and manufacturing

capabilities of Rx products for the U.S. and EU


Break – Q&A


Global Operations and Supply ChainJohn Hendrickson, Executive VP, Global Operations and

Supply Chain


Broad product capabilities

Global manufacturing and scale

Mass customization processes

Quality & Cost Focus

Focus on future demands

CORE OPERATIONS/SUPPLY CAPABILITIES =COMPETITIVE BARRIERS


Broad Operational and Supply Capabilities

TabletsCapsulesSolutionsSuspensionsSprays (Nasal)SuppositoriesCreams/ointmentsPowdersLozengeFoamAerosolsGums


Global Operation/Supply Footprint

Greenville

Allegan Bronx

Michigan: OTC/Rx/Nutrition Production; Sourcing, R&DNew York: OTC/Rx ProductioSouth Carolina: Vitamin Production; R&DFlorida: Pediatric electrolytesMexico: OTC/Rx Production; Sourcing, R&D

England: OTC Production; Sourcing, R&DIndia: API Production, Sourcing, R&DChina: API Production, SourcingIsrael: Rx/API Production; Sourcing, R&D

Procurement resources at all sites around the world

Lake Worth

Mexico


Broad Manufacturing Scale

235 Million Units

10 Million Units

80 Million Units

10 Million Units

4 Billion Tablets

39 Billion Tablets

Solid dose Liquids Semi-SolidsFacilities

11 Plants

2 Plants

4 Plants

NorthAmerica

Europe

Middle/

Far East

API

2.1 tons

44 Billion Tablets 245 Million Units 155 Million Units 3.6 tons

65 Million Units

Total:

1 Billion Tablets

1.5 tons


MASS CUSTOMIZATIONOne Branded Item Yields More Than 450 Store Brand SKUs

51 customersUnique packaging

10 sizes 20, 24, 50, 65, 100, 120, 165, 250, 500, 750 count

45 promotional configurationsTwin packs, bonus sizes, displays

17 case pack combinations

Ibuprofen Tablet

Nearly 12,000 SKUs = High Barrier to Entry


Flexible Packaging OperationsPotential future network and production volumes

38 Packaging Lines

6 Packaging Lines

16 Packaging Lines

2 Packaging Lines

24 Packaging Lines

60 Packaging Lines

2 Packaging Lines

Solid dose Liquids Semi-SolidsFacility

9 Plants

2 Plants

3 Plants

NorthAmerica

Europe

Israel

160 Packaging Lines managing over 3,000 products in 12,000+ stock keeping units

4 Packaging Lines 8 Packaging Lines


Mass CustomizationComplexity = High Barrier to Entry

Allegan, Michigan Site Data

2,400 Customer Orders/week

27,000 Order Line Items Filled/week

2,000 Production Work Orders/week

60 SKU Labeling Conversions/week

3,500 QC Tests/week

2+ New Product Launches/month


Perrigo Operational and Supply Strengths

• Quality integrated into operational systems• Cost focused throughout the supply chain• High volume supply partners with global footprint • Integrated API production for some key items• Great partners on ingredients, finished products and contracted

services• Supply chain integrated with retail customers• Experienced leadership

Strengths Aligned with Perrigo’s Strategy


New Business Environment

“Competition in the next century will not be among companies…

… it will be among supply chains”

- Fortune Magazine

Are we ready?


Overview SC Strategy Linkage

A global, integrated health care products company

Leader in Store Brand OTC/Nutrition and Generic Rx Topicals with unsurpassed Quality and Customer Service

Specialty API with vertical integration opportunities

Best in class Innovation –developing, filing, and partnering to be first-to-market

Top tier low-cost manufacturer

Unleashing the power of our people

QUALITY

SERVICE

LOW COST

GROWTH

PEOPLE

BUSINESS STRATEGIES

Supply Chain “5 Pillar”Strategy

SUPPLY CHAIN FOCUS

Integration of compliance/quality

Superior customer service

Global operations focus on total low cost

Innovation process for product launch/life cycle management

People delivering core values


Global Supply Chain/Operations Focus• Integration of Compliance/Quality processes

throughout the operations– Best-in-Class change-over operations– Full integration of “CAPA” strategies– Value Stream alignment of Quality processes

• Deliver customer service that exceeds expectations– Full integration with retail demand/forecasting processes– Lean Sigma processes focused on increased velocity and

flow– Full integration of vendor partners– “Postponement” strategies implemented for all areas


Global Supply Chain/Operations Focus• Continued focus on direct Materials

– Global Procurement expansion– API Integration of knowledge

• Production Network Optimization– Facility manufacturing integration– Leverage global network capacity and capability– Increased packaging flexibility

• Labor/OH Efficiency– Utilize Lean-Sigma processes to streamline flow– Quality focus on “RFT” to eliminate errors

Deliver 100+ basis points in gross margin improvement in fiscal 2010


Global Supply Chain/Operations Focus• Inventory/working capital reduction

–Increased supplier integration–Lean-Sigma process expansion – increased

velocity–Forecasting/demand planning processes–Strategic allocation to maximize ROIC


SUMMARY – Global CapabilitiesQuality is our Highest Priority

Customer Service

Low Cost Provider and Supply Integration

New Product/Life Cycle Management

People = Supply Chain Value


New Business Environment

“Competition in the next century will not be among companies…

… it will be among supply chains”

- Fortune Magazine

We are ready!


Global FinanceJudy Brown, Executive VP and CFO


Performance vs. Internal Goals - from Continuing Operations

Legend:At or above goal

Below goal

$ in millions

1,368$ 1,730$ 2,007$ 16%

0.88$ 1.62$ 1.87$ 33%

155% 158% 148% 156%

16% 24% 30% N/A

CHC 1,037$ 1,336$ 1,639$ 18%Rx 138 161 164 11%API 122 150 136 7%

CHC 73$ 181$ 239$ 40%Rx 29 32 29 20%API 19 20 15 (19%)

2 Growth based on average results over measured time period rather than CAGR.

1 GAAP diluted earnings per share excluding special items, restructuring, impairment charges and other non-recurring items.

+ 4 – 6 %

+ 8 – 12 %

+ 6 – 10 %

Stated Segment Op Income Goals:+ 10 – 15 %

Perrigo Long-Term Financial GoalsOver any rolling 3 year period:

Revenue: + 6 – 8 %

EPS 1: + 10 – 12 %

Operating Cash Flow2: > 125% of NI

ROIC: +100 - 200 bps per year

Stated Segment Revenue Goals:

+ 15 – 20 %

+ 10 – 15 %

FY07 Actual FY08 Actual FY09 Actual 3 Year CAGR Status


$0

$400

$800

$1,200

$1,600

$2,000

$2,400

2005 2006 2007 2008 2009

• Top line growth fueled by both organic and inorganic activities

• Four year organic CAGR of 16%

• Sales base diversification continues

• $500 million in new product sales during the last 3 years

• FY’10 expected YOY revenue growth of 4%-6%

• Expect new products to contribute $120+ million revenue in FY’10

$1,007

Revenue CAGR = 19%

2005 - 2009

$1,368$1,294

$1,730

$2,007

in U

SD m

illio

ns

Adjusted 4 Year Net Income CAGR = 30%*

*Includes discontinued operations. Reconciliation to GAAP results provided at www.perrigo.com/investor.

Revenue Performance-from Continuing Operations


Perrigo GM% and OI% Performance– from Continuing Operations

27.2%29.9%30.9%

8.3%

13.3%12.5%

0%

5%

10%

15%

20%

25%

30%

35%

FY07 FY08 FY09

Gross Profit Operating Income

• Margin expansion led by $500M of cumulative new products over the last 3 years

• New product launches offset by loss of Rx non-product revenue during FY’08 & FY’09

• Operating margins now consistently in mid-teens given improved portfolio positioning and cost leverage

• FY’10 expected operating margin of 13% to 14%


Distribution, Selling, General & Administration Expenses– from Continuing Operations

$191

$246$255

14.0% 14.2%

12.7%

$130

$150

$170

$190

$210

$230

$250

$270

FY07 FY08 FY09

Mill

ions

9%

10%

11%

12%

13%

14%

15%

16%

17%

18%

% to

Sal

es

DSG&A % of Net Sales

• Lowered DSG&A as a % of sales despite four acquisitions in FY’09

• Strong internal cost controls have led to leveraged DSG&A spend

• FY’10 expected to be 12.7%, consistent with FY09


Operating Cash Flow and EBITDA– Reported Basis – includes Discontinued Operations

$163

$267

$301

$127

$244$258

$100

$150

$200

$250

$300

$350

FY07 FY08 FY09Op CF EBITDA

• Cash flow strong and growing despite weak economy

• FY’09 operating cash flow was 148% of net income

• FY’10 projected cash flow from operations of between $220 million and $260 million


Cash Flow Management –Working Capital Turns Improvements

3.63.8

4.6

0

1

2

3

4

5

FY07 FY08 FY09

• 28% improvement in total working capital turns over the past three years despite increased complexity of product portfolio and supply chain

• DSO improved 12% from 64 days in FY07 to 57 days in FY09

• DPO improved 25% in same period

• Management bonus tied to year-over-year improvement in working capital turns


A Journey of Continuous Improvement

• Sizable investments in Quality systems

• Closure of two Michigan facilities

• Consolidation of logistics facilities

• Strategic talent acquisitions

• Acquisition of Qualis• Exit of Leiner from

OTC space• Rx acquisition of

Glades portfolio• Initiate Indian R&D

capabilities

• Acquisition of Galpharm & Brunel

• Collaboration with Cobrek

• Record new product launches

• Acquisition of JB Labs

• Acquisition of Diba(Mexico)

• Acquisition of Unico• ORx launches

• Scrap as % of inventory begins to decrease

• Tighter controls over net cost productivity

• Divest UK VMS• Supplier quality

mgmt systems

• Investment in sales forecasting systems

• RFT & deviations continue to improve

• SKU reduction prgm• Expansion of

Michigan facility• Successful process

integration of acquisitions

• Investment in API India plant

• Expand Indian R&D• International

footprint expansion

• Expand shared service footprint

• Exit Germany API• Divest Israeli

Consumer Products• Supply Chain

automation investments

FY’07 FY’08 FY’09 FY’10

Expa

ndin

g O

ur R

each

Enha

nce

Effe

ctiv

enes

s


Future Planning Horizons- Organic Growth Only

$ in millions

4 - 6% 5 – 8 %

7 – 13 % 10 – 16 %> 125% NI > 125% NI

($220 - 260 million)+200 - 400 bps +200 - 400 bps

6 – 8 % 5 – 8 %

5 – 7 % 15 – 20 %

Flat 6 – 10 %

CHC 10 – 15 %

Rx 20 – 30 %API 10 – 15 %

FY '11 - FY '13 Organic Growth (3 year CAGR)Perrigo Long-Term Financial Goals

Revenue Growth

EPS Growth

FY'10 Guidance YOY improvements

(as of Aug 19)

Operating Cash Flow - annual target

ROIC - Annual Improvement

Segment Revenue Growth Goals CHC

Rx

API

Segment Operating Income Growth Goals


0

10

20

30

40

50

60

0 10 20 30 40 50 60 70

Operating Income ($ Millions)

%

PDI

API

Rx

CHC

CP

RO

IC

Return on Invested Capital (ROIC)- from Continuing Operations


• Foundational basis for management decision making

• Critical tool used to evaluate business unit/operating location performance, prioritize CAPEX and R&D projects

• Key measure of Senior Management’s Long Term Incentive bonus

• All acquisition opportunities must show clear path to ROIC accretion no later than third year

• Our consolidated, internal ROIC metric has more than doubled since 20070

10

20

30

40

50

60

0 10 20 30 40 50 60 70

Operating Income ($ Millions)

% CAPEX 3CAPEX 4

CAPEX 2

CAPEX 1 CAPEX 5

RO

IC

CAPEX SPEND in $ million


FY09 Rate Structure

Debt Profile

$17

$150$125

$75

$125

FY10 FY12 FY13 FY15 FY18

Total debt* = $492 mil

Debt to CapitalMaturities

44%

25% Fixed

Floating

Floating swapped to fixed

31%

$922

$278

$515 $492

$755 $934

FY07 FY08 FY09

Total Debt* Shareholders’ Equity

27%

73%

36%

64%

35%

65%

Leverage FY07 FY08 FY09. $163 $267 $3011.70 1.93 1.63

EBITDA Debt to EBITDA

*Excludes back-to-back loan


Liquidity Mobilization Potential

(dollars in millions)

$225 Term Loans

$17 Other

$200 Undrawn Revolver$125 Undrawn ABS

$200 Senior Notes$50 Revolver

$492 outstanding

debt

$1,035 Debt Capacity at 6/27/09*

$325 immediately

available

~$220 add’l capacity

• Based on EBITDA at 6/27/09, Perrigo could access ~$550 of additional debt*

• Pretax global cash raises the potential dry powder to the ~$800-850 range

• Continued focus on establishing flexibility while maintaining lowest possible cost

*Based on Company 2005 credit agreement


Uses of Cash• Continued reinvestment in the businesses

– CAPEX projected to be between $55 -70 million in FY’10– Expected future normalized CAPEX = Depreciation Expense ≈ $65 million

• Annual dividend• Share repurchase

– Current 10b5-1 plan offsets dilution factors– Have reentered the market, purchasing $26 million (≈846 thousand

shares) since August 19 earnings call• Strategic investments

– Continue to proactively filter opportunities in critical markets for acquisition– Expand industry partnerships focused on collaborative agreements and

joint ventures to profitably increase portfolio base while reducing risk


Solidly Positioned for the Future• Strong, well capitalized balance sheet• ROIC focus embedded into DNA of organization• Well controlled cost structure • Accountability for performance against commitments• Increased use of global shared services to optimize controls,

drive standardization and further reduce costs• Proven track record of acquisition integration into our existing

processes and operations• Solid generation of cash provides stability in uncertain times as

well as war chest for future growth


Questions


Appendix


Appendix2009 2008 2007 2006

Net sales 2,006,862$ 1,729,921$ 1,368,351$ 1,294,160$

Reported gross profit 595,997$ 517,728$ 367,184$ 369,375$ Inventory step-ups 2,923 5,756 4,573 4,762 Impairment of fixed assets 1,600 - - - Impairment of intangible asset - 10,346 - -

Adjusted gross profit 600,520$ 533,830$ 371,757$ 374,137$ Adjusted gross profit % 29.9% 30.9% 27.2% 28.9%

Reported operating expenses 348,690$ 322,870$ 269,213$ 257,708$ Loss on asset exchange (639) - - - Impairment of note receivable - - (2,034) - Restructuring costs (14,647) (2,312) (879) (8,846) Write-off of in-process R&D (279) (2,786) (8,252) -

Adjusted operating expenses 333,125$ 317,772$ 258,048$ 248,862$ Adjusted operating expenses % 16.6% 18.4% 18.9% 19.2%

Reported operating income 247,307$ 194,858$ 97,971$ 111,667$ Inventory step-ups 2,923 5,756 4,573 4,762 Impairment of fixed assets 1,600 - - - Impairment of intangible asset - 10,346 - - Impairment of note receivable - - 2,034 - Loss on asset exchange 639 - - - Restructuring costs 14,647 2,312 879 8,846 Write-off of in-process R&D 279 2,786 8,252 -

Adjusted operating income 267,395$ 216,058$ 113,709$ 125,275$ Adjusted operating income % 13.3% 12.5% 8.3% 9.7%

Table IPERRIGO COMPANY

RECONCILIATION OF NON-GAAP MEASURES

Fiscal Year*

(in thousands, except per share amounts)(unaudited)


Reported income from continuing operations 141,098$ 140,197$ 72,834$ 68,462$ Inventory step-up - Unico (6) 645 - - - Inventory step-up - Diba (2) 1,082 - - - Inventory step-up - JB Labs (3) 229 - - - Inventory step-up - Galpharm (2) - 4,144 - - Inventory step-up - Glades (7) - - 2,675 - Inventory step-up - Agis (1) - - - 3,714 Impairment of fixed assets (5) 992 - - - Impairment of intangible asset (4) - 6,518 - - Impairment of note receivable (5) - - 1,261 - Investment impairment (8) 15,104 - - - Loss on asset exchange (8) 639 - - - Restructuring costs - Germany (8) 14,647 - - - Restructuring costs - West Coast (4) - 309 - - Restructuring costs - United Kingdom (2) - 1,311 - - Restructuring costs - Michigan Plants (3) - - 563 5,661 Write-off of in-process R&D - Diba acquisition (2) 201 - - - Write-off of in-process R&D - Galpharm acquisition (2) - 2,006 - - Write-off of in-process R&D - Glades acquisition (7) - - 4,827 - Gain on sale of equity method investment (4) - - - (2,939)

Adjusted income from continuing operations 174,637$ 154,485$ 82,160$ 74,898$ Diluted earnings per share from continuing operations

Reported 1.51$ 1.47$ 0.78$ 0.73$ Adjusted 1.87$ 1.62$ 0.88$ 0.80$

Diluted weighted average shares outstanding 93,629 95,210 93,807 94,105(1) Net of taxes at 22%(2) Net of taxes at 28%(3) Net of taxes at 36%(4) Net of taxes at 37%(5) Net of taxes at 38%(6) Net of taxes at 39.3%(7) Net of taxes at 41.5%(8) No tax impact

*All information based on continuing operations.

Appendix2009 2008 2007 2006

Table I, continuedPERRIGO COMPANY


Fiscal Year*



Appendix2009 2008 2007 2006

Reported net income 144,049$ 135,773$ 73,797$ 71,400$ Inventory step-up - Unico (6) 645 - - - Inventory step-up - Diba (2) 1,082 - - - Inventory step-up - JB Labs (3) 229 - - - Inventory step-up - Galpharm (2) - 4,144 - - Inventory step-up - Glades (7) - - 2,675 - Inventory step-up - Agis (1) - - - 3,714 Impairment of fixed assets (5) 992 - - - Impairment of intangible asset (4) - 6,518 - - Impairment of note receivable (5) - - 1,261 - Investment impairment (8) 15,104 - - - Loss on asset exchange (8) 639 - - - Restructuring costs - Germany (8) 14,647 - - - Restructuring costs - West Coast (4) - 309 - - Restructuring costs - United Kingdom (2) - 1,311 - - Restructuring costs - Michigan Plants (3) - - 563 5,661 Write-off of in-process R&D - Diba acquisition (2) 201 - - - Write-off of in-process R&D - Galpharm acquisition (2) - 2,006 - - Write-off of in-process R&D - Glades acquisition (7) - - 4,827 - Gain on sale of equity method investment (4) - - - (2,939)

Adjusted net income 177,588$ 150,061$ 83,123$ 77,836$

Diluted earnings per share Reported 1.54$ 1.43$ 0.79$ 0.76$ Adjusted 1.90$ 1.58$ 0.89$ 0.83$

Diluted weighted average shares outstanding 93,629 95,210 93,807 94,105

(1) Net of taxes at 22%(2) Net of taxes at 28%(3) Net of taxes at 36%(4) Net of taxes at 37%(5) Net of taxes at 38%(6) Net of taxes at 39.3%(7) Net of taxes at 41.5%(8) No tax impact

Table IIPERRIGO COMPANY


Fiscal Year



AppendixTable III

PERRIGO COMPANYRECONCILIATION OF NON-GAAP MEASURES

(dollars in thousands)(unaudited)

Fiscal Year2009 2008 2007

Net cash from operating activities 258,345$ 244,315$ 127,441$ Changes in operating assets and liabilities, net of

asset and business acquisitions (9,373) (23,543) 18,701 Other non-cash expenses (34,781) (15,768) (14,313) Interest expense, net 27,154 17,415 16,110 Income tax expense 59,913 44,671 15,257

EBITDA 301,258$ 267,090$ 163,196$

Total debt, including current maturities 892,181$ 915,190$ 677,919$ Letter of undertaking - back-to-back loan (400,000) (400,000) (400,000)

Total debt, excluding back-to-back loan 492,181$ 515,190$ 277,919$

Debt to EBITDA 1.63 1.93 1.70

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