Perrigo Remains the OTC Leader, but It's Not Out of the Woods Yet

Perrigo’s performance has been mixed, with management changes, integration issues, the return of branded competitors to store shelves, and competitive pressure in the prescription topicals business. Before 2018, when Perrigo selected current CEO Murray Kessler, a former tobacco company CEO, it had rotated through three CEOs in two years. Murray was selected to leverage the firm's more resilient consumer health business. While we previously considered Perrigo’s store-brand market share gains from competitor manufacturing issues and consumers seeking lower-cost options during the recession as unsustainable, we believe the new management team has stabilized operations, and we expect inflationary growth on par with our overall generic market forecasts.