Perrigo Company plc

Who owns Perrigo Company plc?
Perrigo Company plc is a publicly traded corporation listed on NYSE under ticker PRGO. The company is legally domiciled in Ireland as a public limited company. Ownership is distributed among institutional investors including Vanguard Group, BlackRock, and other index fund managers. No single shareholder holds a controlling stake. The company moved its tax domicile to Ireland in 2013 through the acquisition of Elan Corporation.

What does Perrigo make?
Perrigo manufactures over 18,600 products including over-the-counter medicines, nutritional products, infant formula, and personal care items. The company is the largest store-brand OTC pharmaceutical manufacturer in the United States. Its products appear on shelves under retailer private labels including Walmart's Equate, CVS Health, and Walgreens Brand. Perrigo also owns branded products including Rembrandt oral care and Good Sense OTC medicines.

Why is Perrigo headquartered in Ireland?
Perrigo moved its tax domicile to Ireland in 2013 through a $8.6 billion acquisition of Elan Corporation, an Irish biotechnology company. The transaction was a tax inversion, reducing Perrigo's effective tax rate from around 30 percent to the high teens by taking advantage of Ireland's 12.5 percent corporate tax rate. The company's US operations remain based in Allegan, Michigan. The inversion drew political criticism but was completed legally.

What was the Mylan takeover attempt?
In 2015, Mylan N.V. launched a hostile tender offer to acquire Perrigo for approximately $75 in cash and 2.3 Mylan shares per Perrigo share. The Perrigo board unanimously rejected the offer as inadequate. The FTC required Mylan to divest rights to seven generic drugs as a condition. Mylan failed to secure enough tendered shares, and the deal collapsed. Some shareholders later questioned the decision as Perrigo's stock declined.

What is the Three-S plan?
The Three-S plan is CEO Patrick Lockwood-Taylor's restructuring strategy, consisting of Stabilize, Streamline, and Strengthen. Stabilize involves fixing the store-brand business and infant formula operations. Streamline involves divesting non-core assets, including the announced sale of the Dermacosmetics business and the strategic review of infant formula. Strengthen involves investing in high-performing OTC categories and implementing a new commercial operating model.

What were Perrigo's FY2025 financial results?
Perrigo reported FY2025 net sales of $4.25 billion, down 2.8 percent year over year. The company recorded a reported operating loss of $1.12 billion due to a $1.36 billion goodwill impairment charge. Reported diluted EPS was negative $10.12. However, adjusted operating income was $622 million, up 2.3 percent, and adjusted EPS was $2.75, up 7 percent. Operating cash flow was $239 million, and year-end cash was $532 million.

What is happening with Perrigo's infant formula business?
On November 5, 2025, Perrigo announced a strategic review of its infant formula business. The business generated approximately $360 million in net sales in 2025, less than 10 percent of total annual net sales. The review will assess a full range of alternatives including a potential sale. CEO Patrick Lockwood-Taylor said the external environment had changed, making infant formula less strategic alongside the company's OTC businesses. The review is ongoing as of August 2026.

Perrigo's history began in 1887 in Allegan, Michigan, when Luther Perrigo, the owner of a general store and apple-drying business, had the idea to package and distribute patented medicines and household items for country stores. Luther launched the private label concept as a way to build customer loyalty. For no additional cost, Perrigo offered to imprint the individual store's name on the labels of epsom salts, sweet oil, bay rum, and dozens of other wet and dry goods stocked in general stores.

The company was incorporated in 1892. For its first three decades, Perrigo operated as a repackager of home remedies, buying products in bulk and relabeling them for individual retailers. In 1921, Perrigo opened its first manufacturing facility in Allegan, Michigan. This was a turning point. The company transitioned from repackaging to manufacturing its own products.

In the mid-1930s, Perrigo signed its first large private-label customer. The customer base began shifting from small general stores to large regional and national drug chains. By the 1950s, Perrigo had fully converted from a repackager of generic drugs to a manufacturer of quality drugs and beauty aids. In the 1970s, grocery chains and mass merchandisers were added to the customer base, expanding the company's reach beyond drugstores.

By 1980, Perrigo was the nation's largest private label manufacturer of health and beauty products. The Perrigo family's ownership ended in the early 1980s with the sale of the company to management. In 1986, Grow Group acquired Perrigo for $45 million. Two years later, in 1988, Grow Group sold the company back to management for $106 million. Perrigo went public in 1991, listing on NASDAQ before later moving to NYSE.

The 1990s and 2000s were defined by expansion. In 1997, Perrigo acquired a controlling stake in Quimica y Farmacia, a Mexican pharmaceutical firm. In 2001, the company acquired Wrafton Laboratories, a UK maker of store-brand pharmaceuticals, establishing its first European foothold. In 2005, Perrigo acquired Agis Industries, an Israeli generic pharmaceutical company, adding prescription topical products to its portfolio. The company also entered the infant formula and animal health categories during this period.

The most consequential acquisition in Perrigo's history came in 2013. On July 29, 2013, Perrigo announced it would acquire Elan Corporation, an Irish biotechnology company, for approximately $8.6 billion. The deal closed on December 18, 2013. Perrigo and Elan were combined under a new holding company incorporated in Ireland, renamed Perrigo Company plc. The transaction gave Perrigo a royalty stream from Tysabri, a multiple sclerosis drug that generated $1.6 billion in revenue the prior year. More importantly, the deal moved Perrigo's tax domicile to Ireland, reducing its effective tax rate from around 30 percent to the high teens.

The tax inversion drew political scrutiny. The Obama administration and members of Congress criticized tax inversion transactions, and Perrigo's deal became part of the broader debate over corporate tax policy. The US Treasury later issued rules designed to discourage inversions, though Perrigo's transaction was completed before the most restrictive rules took effect.

In 2015, Perrigo faced a hostile takeover attempt from Mylan N.V., a generic pharmaceutical company. Mylan offered $75 in cash and 2.3 Mylan ordinary shares for each Perrigo share. The Perrigo board unanimously rejected the offer, calling it inadequate and harmful to shareholder value. The FTC required Mylan to divest rights to seven generic pharmaceutical products as a condition of the acquisition. Ultimately, Mylan's tender offer failed to secure enough shareholder support, and Perrigo remained independent.

Also in 2015, activist investor Starboard Value disclosed a 4.6 percent stake in Perrigo and pushed for changes, including the sale of the Tysabri royalties and operational improvements. Perrigo subsequently explored selling the Tysabri royalty stream. The company also underwent leadership changes, with CEO Joe Papa departing in 2016. Several CEOs followed over the next several years.

In recent years, Perrigo has faced operational challenges. The infant formula business, which the company entered through its 2018 acquisition of the PBM Holdings infant formula operation, has been a persistent drag on performance. In 2025, Perrigo reported a non-cash goodwill impairment charge of $1.36 billion, driven by underperformance of certain acquired businesses versus original expectations. This charge resulted in a reported operating loss of $1.12 billion and a reported diluted EPS of negative $10.12 for FY2025.

On November 5, 2025, Perrigo announced a strategic review of its infant formula business. The business generated approximately $360 million in net sales in 2025, representing less than 10 percent of total annual net sales. CEO Patrick Lockwood-Taylor said the external environment had changed, making infant formula less strategic alongside the company's consumer health OTC businesses. The review is ongoing as of August 2026.

Perrigo also announced the planned sale of its Dermacosmetics business, expected to close in the second quarter of 2026, with proceeds earmarked for debt reduction. The company issued FY2026 guidance for what it calls "CORE Perrigo," which excludes infant formula and divested businesses. CORE Perrigo FY2026 net sales guidance is negative 3.0 percent to positive 1.0 percent, with adjusted EPS of $2.25 to $2.55.

Perrigo publishes an annual corporate responsibility report covering environmental impact, social initiatives, and governance practices. The company has committed to reducing its environmental footprint through energy efficiency improvements at manufacturing facilities and waste reduction programs.

The company's infant formula business has been a focus of regulatory and quality scrutiny. Perrigo invested $240 million in its infant formula operations to stabilize production and improve quality assurance. The company recovered service levels above 90 percent in 2025, though demand recovery has been slower than expected. The strategic review announced in November 2025 reflects management's assessment that the infant formula business is less aligned with the company's OTC-focused strategy.

Perrigo's supply chain ethics are governed by its supplier code of conduct. The company sources active pharmaceutical ingredients from global suppliers, primarily in India and China. The company states that it audits suppliers for compliance with quality and ethical standards, though specific details on audit frequency and findings are not publicly disclosed.

The tax inversion structure has drawn criticism from policymakers and some shareholder advocates who argue that the company benefits from US infrastructure and consumer markets while paying Irish tax rates. Perrigo has defended the structure as legal and aligned with its international growth strategy.

Perrigo has faced several notable controversies and regulatory challenges:

The 2013 tax inversion with Elan Corporation drew political criticism from the Obama administration and members of Congress. The deal was part of a wave of US companies relocating to Ireland for tax advantages. While the transaction was legal, it became a flashpoint in the debate over corporate tax policy. The US Treasury subsequently issued rules to discourage inversions, though Perrigo's deal was completed before the most restrictive measures took effect.

In 2015, Mylan launched a hostile takeover attempt valued at approximately $205 per Perrigo share. The Perrigo board rejected the offer, and Mylan failed to secure enough tendered shares. The FTC required Mylan to divest rights to seven generic pharmaceutical products as a condition of the deal, which ultimately failed. Some shareholders later questioned whether rejecting Mylan's offer was the right decision, as Perrigo's stock declined in subsequent years.

Also in 2015, activist investor Starboard Value took a 4.6 percent stake and publicly criticized Perrigo's sagging stock price and operational performance. Starboard called for divestitures and operational improvements. The company explored selling the Tysabri royalty stream in response.

The infant formula business has been a persistent source of operational and financial challenges. Perrigo invested $240 million to stabilize the business, but it has underperformed expectations. In FY2025, the company recorded a $1.36 billion goodwill impairment charge, partly related to the infant formula operation. The strategic review announced in November 2025 may result in a sale or other transaction.

The company has also faced product recalls over the years, as is common for pharmaceutical manufacturers. These recalls have involved various OTC products due to quality concerns, though none have risen to the level of a major public health crisis.