Perrigo Company (PRGO) Canaccord Genuity's 46th Annual Growth Conference summary

Market overview and positioning

• Competes in a €400 billion ($400B+) global OTC and specialty care market, with strong positions in the US (store brands) and Europe (branded products), and expected annual growth of 3-5% over the next five years.

• Holds over 50% share of US store brand business and 60% household penetration; in the UK, 80% household penetration, while global penetration remains low at ~5%, indicating significant expansion opportunity.

• Operates across eight categories, including pain, sleep, digestive health, infant formula, allergy, skin, oral care, and women's health, with ongoing portfolio simplification.

• Leverages 250 molecules and formulations for innovation across brands and price points, supporting both retail and consumer channels, with strong retail partnerships.

• Maintains strong regulatory expertise and the largest US OTC manufacturing capabilities, enabling scale, low-cost production, and integrated platform execution.

Strategic transformation and execution

• Implements a Three-S (Stabilize, Streamline, Strengthen) plan, focusing on service levels, portfolio simplification, and cost savings to drive growth, profitability, and value creation.

• Two businesses, infant formula and oral care, are under strategic review; dermocosmetics has already been addressed.

• Category-led model launched in Q1 2026, driving innovation and market share gains, with 58% of next year's innovation pipeline tied to this approach and pipeline value tripled vs. 2024.

• Divestitures since 2024 generated ~$600M for deleveraging, and cost savings initiatives are underway to support profitability.

• Leadership team largely refreshed in the past 18 months, bringing strong execution focus and industry experience.

Financial outlook and market dynamics

• Structural improvements are expected to outweigh transitory headwinds from a soft first half of 2026, including low cough/cold season and retailer destocking, with normalization and improved performance anticipated in the second half.

• Expects revenue and earnings recovery as temporary challenges recede and structural changes take hold.

• Sees significant valuation gap versus peers (P/E 5.8x vs. 15.4x), with opportunities for re-rating as execution improves and deleveraging progresses.

• Multi-year transformation is at an inflection point, with strong momentum projected through 2027–2029.

• Investors may benefit from recovery, deleveraging, and potential multiple re-rating.