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This article was originally published in The Tan Sheet

Executive Summary

A less severe cough and cold season contributed to lower sales in the cough/cold and analgesic categories during the third quarter ended April 1, the private labeler reports. Perrigo credits new product sales, particularly its private label nicotine patch, for partially offsetting the seasonal decline. A softening vitamin market and the loss of two large accounts negatively impacted nutritional sales. On a pro forma basis, OTC and nutritional third quarter sales were $181.5 mil., down 9.7% from a year ago. Perrigo's disposal of $11 mil. in expired inventory during the quarter, approximately $7 mil. more than anticipated, also affected bottom line results. The Allegan, Mich.-based company expects to begin shipping private label extended release acetaminophen by June 30 (1"The Tan Sheet" March 6, In Brief). Perrigo also announced it has settled a lawsuit filed by The Grow Group, the company's former owner, alleging breach of fiduciary duties by certain Perrigo officers

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