Perrigo's Next Private Label First Lands With Second Thoughts On Outlook
This article was originally published in The Pink Sheet
The launch of a private label version 24HR OTC heartburn treatment comes with Perrigo in need of another high-selling product to boost revenues in its core business, OTC private label. But analysts call for Perrigo to do more to grow in new markets.
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CEO John Hendrickson says Perrigo would work with Amazon to develop its own private label OTC line and would not expect to lose existing customers. At a recent investor conference, he said Amazon’s commitment to the OTC category would help grow the market, not take market share from other firms.
Some sort of "pharmacy intervention" could aid switches, CEO Hendrickson says; board bloc is still pushing to divest the generic Rx segment but apparent second-quarter sales validation isn't enough to persuade Hendrickson to stay on.
Board bloc still is pushing to divest the Rx segment, though it achieved 4% volume sales growth and $6m in new product sales in the second quarter. Apparent second-quarter validation isn't enough to persuade CEO John Hendrickson to stay on.