Perrigo Reports Record First Quarter Revenue And Adjusted Earnings And Raises Full Year Adjusted EPS Guidance

Perrigo Reports Record First Quarter Revenue And Adjusted Earnings And Raises
                       Full Year Adjusted EPS Guidance

- Fiscal first quarter adjusted net income increased 16% to a record $119
million, or $1.27 per diluted share, inclusive of an $0.08 tax benefit.

- Fiscal first quarter GAAP net income increased 50% to $106 million, or $1.12
per diluted share, due primarily to $0.21 per diluted share in
acquisition-related costs in the first quarter of fiscal 2012.

- Management raises full-year fiscal 2013 adjusted earnings per share to be in
a range of $5.45 to $5.65 per diluted share, an increase of 9% to 13% compared
to fiscal 2012's $4.99 per diluted share, to reflect the acquisition of
Sergeant's Pet Care Products, Inc., tax benefits and continued execution of
the Company's core businesses.

PR Newswire

ALLEGAN, Mich., Nov. 7, 2012

ALLEGAN, Mich., Nov. 7, 2012 /PRNewswire/ --Perrigo Company (Nasdaq: PRGO;
TASE: PRGO) today announced results for its first quarter ended September 29,
2012.

(Logo: http://photos.prnewswire.com/prnh/20120301/DE62255LOGO )

Perrigo's Chairman and CEO Joseph C. Papa commented, "We have started fiscal
2013 well, delivering record first quarter revenue and adjusted earnings. We
also delivered all-time record adjusted gross and operating margins. Store
brand OTC market share continues to grow. Our Consumer Healthcare segment's
revenue grew 9.4% from a record first quarter last year. Our Rx segment
continued its excellent performance, which was driven by the acquisition of
Paddock Labs, new product sales and strong organic Rx results, combined with
our continued focus on quality and R&D. Clearly we are focused on the results
from our Nutritionals segment and the team has an action plan in place for the
rest of the year. We believe our value proposition continues to resonate well
with consumers."

Refer to Table I at the end of this press release for adjustments in the
current year and prior year periods and additional non-GAAP disclosure
information. The Company's reported results are summarized in the attached
Condensed Consolidated Statements of Income, Balance Sheets and Cash Flows.

Perrigo Company
(in thousands, except per share amounts)
(see the attached Table I for reconciliation to GAAP numbers)
                      Fiscal 2013    Fiscal 2012
                      First Quarter  First Quarter  

                      Ended          Ended          YoY
                      9/29/2012      9/24/2011      % Change
Net Sales             $769,810       $725,295       6.1%
Reported Net Income   $105,580       $70,458        49.8%
Adjusted Net Income   $119,467       $103,320       15.6%
Reported Diluted EPS  $1.12          $0.75          49.3%
Adjusted Diluted EPS  $1.27          $1.10          15.5%
Diluted Shares        94,335         93,953         0.4%

First Quarter Results

Net sales in the quarter were $770 million, an increase of 6% over the first
quarter of fiscal 2012, driven primarily by $28 million attributable to the
Paddock Laboratories, Inc. ("Paddock") and CanAm Care, LLC ("CanAm")
acquisitions and new product sales of $26 million, partially offset by
decreases in sales of certain existing products in the Nutritionals and API
segments and $5 million due to unfavorable changes in foreign currency
exchange rates. Excluding charges as outlined in Table I at the end of this
release, first quarter fiscal 2013 adjusted net income increased 16% to $119
million, or $1.27 per share. Reported net income increased 50% to $106
million, or $1.12 per diluted share, due primarily to $0.21 per diluted share
in acquisition-related costs in the first quarter of fiscal
2012.

Consumer Healthcare

Consumer Healthcare Segment
(in thousands)
(see the attached Table II for reconciliation to GAAP numbers)
                          Fiscal 2013   Fiscal 2012
                          First Quarter First Quarter 

                          Ended         Ended         YoY
                          9/29/2012     9/24/2011     % Change
Net Sales                 $450,416      $411,681      9.4%
Reported Gross Profit     $145,835      $129,358      12.7%
Adjusted Gross Profit     $146,850      $130,380      12.6%
Reported Operating Income $79,288       $69,189       14.6%
Adjusted Operating Income $81,551       $71,433       14.2%
Reported Gross Margin     32.4%         31.4%         +100 bps
Adjusted Gross Margin     32.6%         31.7%         +90 bps
Reported Operating Margin 17.6%         16.8%         +80 bps
Adjusted Operating Margin 18.1%         17.4%         +70 bps

Consumer Healthcare segment net sales increased 9% to $450 million due to an
increase in sales of existing products of $36 million (contract, cough/cold
and smoking cessation categories), new product sales of $13 million
(gastrointestinal, cough/cold and dermatological categories) and $9 million in
incremental sales attributable to the acquisition of CanAm. These combined
increases were partially offset by a decline of $17 million in sales of
existing products (analgesics and feminine hygiene categories) and a decline
of $4 million due to discontinued products.

Adjusted gross and operating margins expanded 90 and 70 basis points,
respectively, due to new products, product mix and cost controls in the
Company's manufacturing plants.

Nutritionals

Nutritionals Segment
(in thousands)
(see the attached Table II for reconciliation to GAAP numbers)
                          Fiscal 2013   Fiscal 2012
                          First Quarter First Quarter 

                          Ended         Ended         YoY
                          9/29/2012     9/24/2011     % Change
Net Sales                 $103,423      $119,861      -13.7%
Reported Gross Profit     $25,835       $29,569       -12.6%
Adjusted Gross Profit     $28,885       $35,418       -18.4%
Reported Operating Income $3,883        $7,241        -46.4%
Adjusted Operating Income $11,183       $16,705       -33.1%
Reported Gross Margin     25.0%         24.7%         +30 bps
Adjusted Gross Margin     27.9%         29.5%         -160 bps
Reported Operating Margin 3.8%          6.0%          -220 bps
Adjusted Operating Margin 10.8%         13.9%         -310 bps

The Nutritionals segment reported first quarter net sales of $103 million,
compared with $120 million a year ago as existing product sales declined $20
million, partially offset by new product sales of $3 million (infant formula
category). The decrease in sales was due primarily to a decline in existing
product sales in the vitamin, minerals and dietary supplements ("VMS")
category driven by increased competition and increased retail shipments of
infant formula placed in the fourth quarter of fiscal 2012 in advance of the
planned July 1^st shutdown of the Company's Vermont Plant to perform an SAP
conversion and prepare for the installation of a new packaging line. Reported
and adjusted gross profit and margin were impacted by relatively lower volumes
in infant formula and VMS, along with increased inventory costs.

Operating income and margin were impacted by higher combined research and
development and distribution, selling, general and administration expenses as
a percent to net sales, though they were lower on a dollar basis,
year-over-year.

Rx Pharmaceuticals

Rx Pharmaceuticals Segment
(in thousands)
(see the attached Table II for reconciliation to GAAP numbers)
                          Fiscal 2013   Fiscal 2012
                          First Quarter First Quarter 

                          Ended         Ended         YoY
                          9/29/2012     9/24/2011     % Change
Net Sales                 $162,942      $127,627      27.7%
Reported Gross Profit     $86,684       $41,460       109.1%
Adjusted Gross Profit     $95,086       $75,992       25.1%
Reported Operating Income $68,504       $24,485       179.8%
Adjusted Operating Income $76,906       $58,673       31.1%
Reported Gross Margin     53.2%         32.5%         +2,070 bps
Adjusted Gross Margin     58.4%         59.5%         -110 bps
Reported Operating Margin 42.0%         19.2%         +2,280 bps
Adjusted Operating Margin 47.2%         46.0%         +120 bps

The Rx Pharmaceuticals segment first quarter net sales increased 28% to $163
million due primarily to incremental net sales of $19 million from the July
26, 2011 Paddock acquisition, new product sales of $8 million and improved
pricing on select products.

Year-over-year percent changes in reported gross profit and operating income
were impacted by the absence of a one-time charge of $27 million to cost of
sales as a result of the step-up of inventory value related to the Paddock
acquisition in the first quarter of fiscal 2012.

API

API Segment
(in thousands)
(see the attached Table II for reconciliation to GAAP numbers)
                          Fiscal 2013   Fiscal 2012
                          First Quarter First Quarter 

                          Ended         Ended         YoY
                          9/29/2012     9/24/2011     % Change
Net Sales                 $36,419       $47,644       -23.6%
Reported Gross Profit     $21,360       $21,608       -1.1%
Adjusted Gross Profit     $21,823       $22,129       -1.4%
Reported Operating Income $13,319       $14,215       -6.3%
Adjusted Operating Income $13,782       $14,736       -6.5%
Reported Gross Margin     58.7%         45.4%         +1,330 bps
Adjusted Gross Margin     59.9%         46.4%         +1,350 bps
Reported Operating Margin 36.6%         29.8%         +680 bps
Adjusted Operating Margin 37.8%         30.9%         +690 bps

The API segment's net sales declined by 24% to $36 million due primarily to a
decrease in existing product sales of approximately $17 million as a result of
increased competition and pricing pressures on select products, along with a
negative impact of $2 million due to changes in foreign currency, partially
offset by $7 million related to the launch of a customer's product with
180-day exclusivity status.

Gross and operating margins were positively impacted by the product launch
referred to above.

Other

The Other category reported decreased first quarter net sales of approximately
$17 million, compared with $18 million a year ago, due primarily to the impact
of unfavorable changes in foreign currency exchange rates.

Adjusted operating income was approximately $1 million, representing an
increase in adjusted operating margin of 100 basis points from last year due
to product mix.

Guidance

Chairman, President and CEO Joseph C. Papa concluded, "The strength of our
diversified business model was evident this quarter. Margin expansion remains
a top priority for the Company and we continue to make ROIC positive
investments in operations and products. As we look forward to the rest of
fiscal 2013, we continue to expect strong new product launches and further
conversion of consumers to store brand."

The Company expects fiscal 2013 reported earnings to be between $4.71 and
$4.91 per diluted share as compared to $4.18 in fiscal 2012. Excluding the
charges outlined in Table III at the end of this release, the Company expects
fiscal 2013 adjusted earnings to be between $5.45 and $5.65 per diluted share
as compared to $4.99 in fiscal 2012 reflecting the acquisition of Sergeant's
Pet Care Products, Inc., the realization of tax benefits and continued
execution of the core businesses. This new range implies a year-over-year
growth rate in adjusted earnings of 9% to 13% over fiscal 2012's adjusted
earnings from continuing operations per diluted share.

The conference call will be available live via webcast to interested parties
on the Perrigo website http://perrigo.investorroom.com/events-webcasts or by
phone at 877-248-9413, International 973-582-2737, and reference ID# 46994711.
A taped replay of the call will be available beginning at approximately 2:00
p.m. (ET) Wednesday, November 7, 2012 until midnight Friday, November 23,
2012. To listen to the replay, dial 855-859-2056, International 404-537-3406,
and use access code 46994711.

From its beginnings as a packager of generic home remedies in 1887, Perrigo
Company, based in Allegan, Michigan, has grown to become a leading global
provider of quality, affordable healthcare products. The Company develops,
manufactures and distributes over-the-counter ("OTC") and generic prescription
("Rx") pharmaceuticals, nutritional products and active pharmaceutical
ingredients ("API") and is the world's largest manufacturer of OTC
pharmaceutical products for the store brand market. Perrigo's mission is to
offer uncompromised "quality, affordable healthcare products", and it does so
across a wide variety of product categories primarily in the United States,
United Kingdom, Mexico, Israel and Australia, as well as certain other markets
throughout the world, including Canada, China and Latin America. Visit Perrigo
on the Internet (http://www.perrigo.com).

Note: Certain statements in this press release are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and are subject to the safe harbor created thereby. These statements
relate to future events or the Company's future financial performance and
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those expressed or
implied by any forward-looking statements. In some cases, forward-looking
statements can be identified by terminology such as "may," "will," "could,"
"would," "should," "expect," "plan," "anticipate," "intend," "believe,"
"estimate," "predict," "potential" or other comparable terminology. The
Company has based these forward-looking statements on its current
expectations, assumptions, estimates and projections. While the Company
believes these expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond the
Company's control. These and other important factors, including those
discussed under "Risk Factors" in the Company's Form 10-K for the year ended
June 30, 2012, as well as the Company's subsequent filings with the Securities
and Exchange Commission, may cause actual results, performance or achievements
to differ materially from those expressed or implied by these forward-looking
statements. The forward-looking statements in this press release are made only
as of the date hereof, and unless otherwise required by applicable securities
laws, the Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.

PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
                                    First Quarter
                                    2013                 2012
Net sales                           $    769,810      $    725,295
Cost of sales                       484,541              497,716
Gross profit                        285,269              227,579
Operating expenses
Distribution                        10,767               10,264
Research and development            27,395               19,638
Selling and administration          90,534               96,125
Total operating expenses            128,696              126,027
Operating income                    156,573              101,552
Interest, net                       15,853               12,570
Other (income) expense, net         (62)                 229
Income before income taxes          140,782              88,753
Income tax expense                  35,202               18,295
Net income                          $    105,580      $     70,458
Earnings per share
Basic earnings per share            $       1.13   $       0.76
Diluted earnings per share          $       1.12   $       0.75
Weighted average shares outstanding
Basic                               93,607               92,900
Diluted                             94,335               93,953
Dividends declared per share        $       0.08  $       0.07
See accompanying notes to condensed consolidated financial statements.

PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
                                      First Quarter
                                      2013                 2012
Net Income                            $           $         
                                          105,580           70,458
Other comprehensive income (loss):
Change in fair value of derivative    1,462                (7,796)
financial instruments, net of tax
Foreign currency translation          5,424                (52,960)
adjustments
Post-retirement liability             (41)                 (17)
adjustments, net of tax
Other comprehensive income (loss),    6,845                (60,773)
net of tax
Comprehensive income                  $           $         
                                          112,425            9,685
See accompanying notes to condensed consolidated financial statements.

PERRIGO COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                             September 29,    June 30,         September 24,
                             2012             2012             2011
Assets
Current assets
Cash and cash equivalents    $         $         $       
                              631,993         602,489         116,615
Accounts receivable, net     584,008          572,582          521,263
Inventories                  598,825          547,455          563,257
Current deferred income      45,781           45,738           50,276
taxes
Income taxes refundable      4,252            1,047            8,891
Prepaid expenses and other   35,872           26,610           38,789
current assets
Total current assets         1,900,731        1,795,921        1,299,091
Property and equipment       1,135,502        1,118,837        1,037,270
Less accumulated             (555,241)        (540,487)        (504,389)
depreciation
                             580,261          578,350          532,881
Goodwill and other
indefinite-lived intangible  822,359          820,122          812,924
assets
Other intangible assets, net 711,104          729,253          771,677
Non-current deferred income  14,627           13,444           13,479
taxes
Other non-current assets     88,348           86,957           84,035
                             $          $          $      
                             4,117,430       4,024,047       3,514,087
Liabilities and
Shareholders' Equity
Current liabilities
Accounts payable             $         $         $       
                              306,972         317,341         303,549
Short-term debt              1,609            90               3,750
Payroll and related taxes    57,864           89,934           72,106
Accrued customer programs    122,495          116,055          112,592
Accrued liabilities          79,756           76,406           83,374
Accrued income taxes         21,228           12,905           6,677
Current portion of long-term 40,000           40,000           40,000
debt
Total current liabilities    629,924          652,731          622,048
Non-current liabilities
Long-term debt, less current 1,329,827        1,329,235        1,155,787
portion
Non-current deferred income  26,297           24,126           9,604
taxes
Other non-current            166,064          165,310          182,207
liabilities
Total non-current            1,522,188        1,518,671        1,347,598
liabilities
Shareholders' Equity
Controlling interest:
Preferred stock, without par
value, 10,000 shares         -                -                -
authorized
Common stock, without par
value, 200,000 shares        512,658          504,708          478,035
authorized
Accumulated other            46,249           39,404           66,277
comprehensive income
Retained earnings            1,404,977        1,306,925        998,256
                             1,963,884        1,851,037        1,542,568
Noncontrolling interest      1,434            1,608            1,873
Total shareholders' equity   1,965,318        1,852,645        1,544,441
                             $          $          $      
                             4,117,430       4,024,047       3,514,087
Supplemental Disclosures of
Balance Sheet Information
Allowance for doubtful       $         $         $       
accounts                        2,224        2,556        9,617
Working capital              $          $          $       
                             1,270,807       1,143,190        677,043
Preferred stock, shares      -                -                -
issued and outstanding
Common stock, shares issued  93,840           93,484           93,189
and outstanding
See accompanying notes to condensed consolidated financial statements.

PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                       First Quarter
                                       2013                2012
Cash Flows (For) From Operating
Activities
Net income                             $    105,580    $     70,458
Adjustments to derive cash flows
Gain on sale of pipeline development   -                   (3,500)
projects
Depreciation and amortization          33,424              34,720
Share-based compensation               4,772               3,935
Income tax benefit from exercise of    2,068               2,125
stock options
Excess tax benefit of stock            (13,342)            (10,578)
transactions
Deferred income taxes                 (3,483)             (3,084)
Subtotal                               129,019             94,076
Changes in operating assets and
liabilities, net of business
acquisition
Accounts receivable                    (6,682)             8,581
Inventories                            (48,110)            (7,156)
Accounts payable                       (12,574)            (47,249)
Payroll and related taxes              (32,298)            (10,681)
Accrued customer programs              6,440               (5,708)
Accrued liabilities                    2,713               17,678
Accrued income taxes                   15,674              (878)
Other                                  (9,327)             5,484
Subtotal                               (84,164)            (39,929)
Net cash from operating activities     44,855              54,147
Cash Flows (For) From Investing
Activities
Acquisition of business, net of cash   -                   (547,052)
acquired
Proceeds from sale of intangible
assets and pipeline development        -                   10,500
projects
Additions to property and equipment    (14,804)            (18,953)
Other                                  -                   (250)
Net cash for investing activities      (14,804)            (555,755)
Cash Flows (For) From Financing
Activities
Borrowings of short-term debt, net     1,519               980
Net borrowings under accounts          -                   55,000
receivable securitization program
Borrowings of long-term debt           592                 250,787
Deferred financing fees                -                   (2,468)
Excess tax benefit of stock            13,342              10,578
transactions
Issuance of common stock               4,063               5,884
Repurchase of common stock             (12,159)            (7,899)
Cash dividends                         (7,528)             (6,535)
Net cash (for) from financing          (171)               306,327
activities
Effect of exchange rate changes on     (376)               1,792
cash
Net increase (decrease) in cash and    29,504              (193,489)
cash equivalents
Cash and cash equivalents, beginning   602,489             310,104
of period
Cash and cash equivalents, end of      $    631,993    $    116,615
period
Supplemental Disclosures of Cash Flow
Information
Cash paid/received during the period
for:
Interest paid                          $      2,096  $      3,240
Interest received                      $      1,276  $      1,127
Income taxes paid                      $     20,514   $      9,151
Income taxes refunded                  $            $        768
                                       526
See accompanying notes to condensed consolidated financial statements.

Table I
PERRIGO COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share amounts)
(unaudited)
               Three Months Ended
Consolidated   September 29, 2012                     September 24, 2011                    % Change
               GAAP      Non-GAAP           As        GAAP     Non-GAAP           As        GAAP  As
                         Adjustments        Adjusted           Adjustments        Adjusted        Adjusted
               $      $             $      $     $             $   
Net sales                   -                              -                   6 %   6 %
               769,810                     769,810  725,295                     725,295
Cost of sales  484,541   13,323      ^(a)   471,218   497,716  42,362      ^(a,d) 455,354   -3 %  3 %
Gross profit   285,269   13,323             298,592   227,579  42,362             269,941   25 %  11 %
Operating
expenses
Distribution   10,767    -                  10,767    10,264   -                  10,264    5 %   5 %
Research and   27,395    -                  27,395    19,638   (3,500)     ^(e)   23,138    39 %  18 %
development
Selling and    90,534    7,375       ^(a,b) 83,159    96,125   13,620      ^(a,f) 82,505    -6 %  1 %
administration
Total
operating      128,696   7,375              121,321   126,027  10,120             115,907   2 %   5 %
expenses
Operating      156,573   20,698             177,271   101,552  52,482             154,034   54 %  15 %
income
Interest, net  15,853    -                  15,853    12,570   -                  12,570    26 %  26 %
Other (income) (62)      -                  (62)      229      -                  229       -     -
expense, net
Income before  140,782   20,698             161,480   88,753   52,482             141,235   59 %  14 %
income taxes
Income tax     35,202    6,811       ^(c)   42,013    18,295   19,620      ^(c)   37,915    92 %  11 %
expense
               $      $             $      $     $             $   
Net income              13,887                            32,862                      50 %  16 %
               105,580                     119,467  70,458                      103,320
Diluted        $                         $      $                        $   
earnings per                                                                49 %  15 %
share          1.12                         1.27      0.75                        1.10
Diluted
weighted       94,335                       94,335    93,953                      93,953
average shares
outstanding
Selected
ratios as a
percentage of
net sales
Gross profit   37.1 %                       38.8 %    31.4 %                      37.2 %
Operating      16.7 %                       15.8 %    17.4 %                      16.0 %
expenses
Operating      20.3 %                       23.0 %    14.0 %                      21.2 %
income
(a) Deal-related amortization
(b) Acquisition costs of $1,877
(c) Total tax effect for non-GAAP pre-tax
adjustments
(d) Inventory step-up of $27,179
(e) Proceeds from sale of pipeline development
projects
(f) Acquisition-related and severance costs of
$8,782

Table II
PERRIGO COMPANY
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
                Three Months Ended
Consumer        September 29, 2012                  September 24, 2011                    % Change
Healthcare
                GAAP     Non-GAAP         As        GAAP     Non-GAAP           As        GAAP  As
                         Adjustments      Adjusted           Adjustments        Adjusted        Adjusted
Net sales       $     $           $       $     $             $      9 %   9 %
                450,416     -          450,416  411,681      -          411,681
Cost of sales   304,581  1,015       ^(a) 303,566   282,323  1,022       ^(a)   281,301   8 %   8 %
Gross profit    145,835  1,015            146,850   129,358  1,022              130,380   13 %  13 %
Operating       66,547   1,248       ^(a) 65,299    60,169   1,222       ^(a)   58,947    11 %  11 %
expenses
Operating       $     $           $      $     $             $   
income                  2,263            81,551            2,244             71,433  15 %  14 %
                79,288                              69,189
Selected ratios
as a percentage
of net sales
Gross profit    32.4 %                    32.6 %    31.4 %                      31.7 %
Operating       14.8 %                    14.5 %    14.6 %                      14.3 %
expenses
Operating       17.6 %                    18.1 %    16.8 %                      17.4 %
income
                Three Months Ended
Nutritionals    September 29, 2012                  September 24, 2011                    % Change
                GAAP     Non-GAAP         As        GAAP     Non-GAAP           As        GAAP  As
                         Adjustments      Adjusted           Adjustments        Adjusted        Adjusted
Net sales       $     $           $       $     $             $      -14   -14 %
                103,423     -          103,423  119,861      -          119,861   %
Cost of sales   77,588   3,050       ^(a) 74,538    90,292   5,849       ^(a)   84,443    -14   -12 %
                                                                                          %
Gross profit    25,835   3,050            28,885    29,569   5,849              35,418    -13   -18 %
                                                                                          %
Operating       21,952   4,250       ^(a) 17,702    22,328   3,615       ^(a)   18,713    -2 %  -5 %
expenses
Operating       $     $           $      $     $             $      -46
income                 7,300            11,183           9,464             16,705  %     -33 %
                3,883                               7,241
Selected ratios
as a percentage
of net sales
Gross profit    25.0 %                    27.9 %    24.7 %                      29.5 %
Operating       21.2 %                    17.1 %    18.6 %                      15.6 %
expenses
Operating       3.8 %                     10.8 %    6.0 %                       13.9 %
income
                Three Months Ended
Rx              September 29, 2012                  September 24, 2011                    % Change
Pharmaceuticals
                GAAP     Non-GAAP         As        GAAP     Non-GAAP           As        GAAP  As
                         Adjustments      Adjusted           Adjustments        Adjusted        Adjusted
Net sales       $     $           $       $     $             $      28 %  28 %
                162,942     -          162,942  127,627      -          127,627
Cost of sales   76,258   8,402       ^(a) 67,856    86,167   34,532      ^(a,b) 51,635    -11   31 %
                                                                                          %
Gross profit    86,684   8,402            95,086    41,460   34,532             75,992    109   25 %
                                                                                          %
Operating       18,180   -                18,180    16,975   (344)       ^(c,d) 17,319    7 %   5 %
expenses
Operating       $     $           $      $     $             $      180
income                  8,402            76,906           34,188             58,673  %     31 %
                68,504                              24,485
Selected ratios
as a percentage
of net sales
Gross profit    53.2 %                    58.4 %    32.5 %                      59.5 %
Operating       11.2 %                    11.2 %    13.3 %                      13.6 %
expenses
Operating       42.0 %                    47.2 %    19.2 %                      46.0 %
income
(a) Deal-related amortization
(b) Inventory step-up of $27,179
(c) Proceeds of $3,500 from sale of pipeline
development projects
(d) Severance costs of $3,156

Table II (Continued)
PERRIGO COMPANY
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
           Three Months Ended
API        September 29, 2012                  September 24, 2011                 % Change
           GAAP     Non-GAAP         As        GAAP    Non-GAAP         As        GAAP  As
                    Adjustments      Adjusted          Adjustments      Adjusted        Adjusted
           $     $           $      $     $           $      -24
Net sales  36,419    -                            -                    %     -24 %
                                     36,419   47,644                   47,644
Cost of    15,059   463         ^(a) 14,596    26,036  521         ^(a) 25,515    -42   -43 %
sales                                                                             %
Gross      21,360   463              21,823    21,608  521              22,129    -1 %  -1 %
profit
Operating  8,041    -                8,041     7,393   -                7,393     9 %   9 %
expenses
Operating  $     $           $      $     $           $   
income     13,319   463                            521                     -6 %  -6 %
                                     13,782   14,215                   14,736
Selected
ratios as
a
percentage
of net
sales
Gross      58.7 %                    59.9 %    45.4 %                   46.4 %
profit
Operating  22.1 %                    22.1 %    15.5 %                   15.5 %
expenses
Operating  36.6 %                    37.8 %    29.8 %                   30.9 %
income
           Three Months Ended
Other      September 29, 2012                  September 24, 2011                 % Change
           GAAP     Non-GAAP         As        GAAP    Non-GAAP         As        GAAP  As
                    Adjustments      Adjusted          Adjustments      Adjusted        Adjusted
           $     $           $      $     $           $      -10
Net sales  16,610    -                            -                    %     -10 %
                                     16,610   18,482                   18,482
Cost of    11,055   393         ^(a) 10,662    12,898  437         ^(a) 12,461    -14   -14 %
sales                                                                             %
Gross      5,555    393              5,948     5,584   437              6,021     -1 %  -1 %
profit
Operating  5,130    -                5,130     5,299   -                5,299     -3 %  -3 %
expenses
Operating  $     $           $      $     $           $   
income            393                        437                  49 %  13 %
           425                       818        285                   722
Selected
ratios as
a
percentage
of net
sales
Gross      33.4 %                    35.8 %    30.2 %                   32.6 %
profit
Operating  30.9 %                    30.9 %    28.7 %                   28.7 %
expenses
Operating  2.6 %                     4.9 %     1.5 %                    3.9 %
income
(a) Deal-related amortization
(b) Inventory step-up of $27,179
(c) Proceeds of $3,500 from sale of pipeline
development projects
(d) Severance costs of $3,156

Table III
PERRIGO COMPANY
FY 2013 GUIDANCE AND FY 2012 EPS
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
                                                         Full Year
                                                         Fiscal 2013 Guidance
 FY13 reported diluted EPS range                         $4.71 - $4.91
  Deal-related amortization ^(1)                      0.62
  Charge associated with inventory step-up            0.11
  Charges associated with acquisition costs           0.01
 FY13 adjusted diluted EPS range                         $5.45 - $5.65
                                                         Fiscal 2012*
 FY12 reported diluted EPS from continuing operations    $4.18
  Deal-related amortization ^(1)                      0.523
  Charge associated with inventory step-up            0.181
  Charges associated with acquisition-related and     0.062
 severance costs
  Charges associated with restructuring               0.061
  Net charge associated with acquired R&D and         0.012
 proceeds from sale of IPR&D projects
  Earnings associated with sale of pipeline           (0.026)
 development projects
 FY12 adjusted diluted EPS from continuing operations    $4.99
 (1) Amortization of acquired intangible assets related to business
 combinations and asset acquisitions
 *All information based on continuing operations.

Table IV
PERRIGO COMPANY
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
                          Q1 FY12*   Q2 FY12*   Q3 FY12*   Q4 FY12*  FY 2012*
Consumer Healthcare
Net sales                 $        $       $        $      $  
                          411,681   471,277    448,848   483,982   1,815,788
Reported gross profit     $        $       $        $      $   
                          129,358   148,813    140,417   153,169   571,757
Deal-related              1,022      1,006      1,010      1,008     4,046
amortization^(1)
Adjusted gross profit     $        $       $        $      $   
                          130,380   149,819    141,427   154,177   575,803
Adjusted gross profit %   31.7%      31.8%      31.5%      31.9%     31.7%
Reported operating        $       $       $       $      $   
expenses                  60,169    66,563    61,034     68,689  256,455
Deal-related              (1,222)    (1,214)    (1,411)    (1,419)   (5,266)
amortization^(1)
Adjusted operating        $       $       $       $      $   
expenses                 58,947    65,349    59,623     67,270  251,189
Adjusted operating        14.3%      13.9%      13.3%      13.9%     13.8%
expenses %
Reported operating        $       $       $       $      $   
income                   69,189    82,250    79,383     84,480  315,302
Deal-related              2,244      2,220      2,421      2,427     9,312
amortization^(1)
Adjusted operating        $       $       $       $      $   
income                   71,433    84,470    81,804     86,907  324,614
Adjusted operating income 17.4%      17.9%      18.2%      18.0%     17.9%
%
Nutritionals
Net sales                 $        $       $        $      $   
                          119,861   128,147    117,683   135,335   501,026
Reported gross profit     $       $       $       $      $   
                          29,569    28,230    30,350     37,196  125,345
Deal-related              5,849      3,022      3,021      3,021     14,913
amortization^(1)
Adjusted gross profit     $       $       $       $      $   
                          35,418    31,252    33,371     40,217  140,258
Adjusted gross profit %   29.5%      24.4%      28.4%      29.7%     28.0%
Reported operating        $       $       $       $      $    
expenses                  22,328    23,677    28,505     25,387  99,897
Deal-related              (3,615)    (3,615)    (3,616)    (3,615)   (14,461)
amortization^(1)
Restructuring charges     -          -          (7,081)    (1,674)   (8,755)
Adjusted operating        $       $       $       $      $    
expenses                  18,713    20,062    17,808     20,098  76,681
Adjusted operating        15.6%      15.7%      15.1%      14.9%     15.3%
expenses %
Reported operating        $      $      $      $      $    
income                   7,241     4,553     1,845      11,809  25,448
Deal-related              9,464      6,637      6,637      6,636     29,374
amortization^(1)
Restructuring charges     -          -          7,081      1,674     8,755
Adjusted operating        $       $       $       $      $    
income                   16,705    11,190    15,563     20,119  63,577
Adjusted operating income 13.9%      8.7%       13.2%      14.9%     12.7%
%
Rx Pharmaceuticals
Net sales                 $        $       $        $      $   
                          127,627   177,196    155,591   156,975   617,389
Reported gross profit     $       $       $       $      $   
                          41,460    91,380    83,331     72,450  288,621
Deal-related              7,353      7,969      8,574      8,532     32,428
amortization^(1)
Inventory step-up         27,179     -          -          -         27,179
Adjusted gross profit     $       $       $       $      $   
                          75,992    99,349    91,905     80,982  348,228
Adjusted gross profit %   59.5%      56.1%      59.1%      51.6%     56.4%
Reported operating        $       $       $       $      $    
expenses                  16,975    21,404    16,076     20,671  75,126
Acquisition-related costs (3,156)    (599)      -          -         (3,755)
Earnings associated with  3,500      -          -          -         3,500
sale of IPR&D projects
Write-off of in-process   -          -          -          (750)     (750)
R&D
Adjusted operating        $       $       $       $      $    
expenses                 17,319    20,805    16,076     19,921  74,121
Adjusted operating        13.6%      11.7%      10.3%      12.7%     12.0%
expenses %
Reported operating        $       $       $       $      $   
income                   24,485    69,976    67,255     51,779  213,495
Deal-related              7,353      7,969      8,574      8,532     32,428
amortization^(1)
Inventory step-up         27,179     -          -          -         27,179
Acquisition-related costs 3,156      599        -          -         3,755
Earnings associated with  (3,500)    -          -          -         (3,500)
sale of IPR&D projects
Write-off of in-process   -          -          -          750       750
R&D
Adjusted operating        $       $       $       $      $   
income                   58,673    78,544    75,829     61,061  274,107
Adjusted operating income 46.0%      44.3%      48.7%      38.9%     44.4%
%
(1)Amortization of acquired intangible assets related to business
combinations and asset acquisitions
*All information based on continuing operations.

Table IV (Continued)
PERRIGO COMPANY
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
                         Q1 FY12*   Q2 FY12*   Q3 FY12*   Q4 FY12*   FY 2012*
API
Net sales                $        $         $        $        $  
                         47,644    42,751    36,952    38,434     165,781
Reported gross profit    $        $         $        $        $   
                         21,608    20,150    18,676    25,674     86,108
 Deal-related          521        496        490        482        1,989
amortization ^(1)
Adjusted gross profit    $        $         $        $        $   
                         22,129    20,646    19,166    26,156     88,097
Adjusted gross profit %  46.4%      48.3%      51.9%      68.1%      53.1%
Reported operating       $        $         $        $        $   
income                   14,215    11,692    10,462    17,512     53,881
 Deal-related          521        496        490        482        1,989
amortization ^(1)
Adjusted operating       $        $         $        $        $   
income                  14,736    12,188    10,952    17,994     55,870
Adjusted operating       30.9%      28.5%      29.6%      46.8%      33.7%
income %
Other
Net sales                $        $         $        $        $   
                         18,482    18,798    18,943    17,041     73,264
Reported gross profit    $       $        $       $       $   
                         5,584     6,303     6,498     5,382      23,767
 Deal-related          437        438        410        403        1,688
amortization ^(1)
Adjusted gross profit    $       $        $       $       $   
                         6,021     6,741     6,908     5,785      25,455
Adjusted gross profit %  32.6%      35.9%      36.5%      33.9%      34.7%
Reported operating       $      $      $      $      $    
income (loss)             285      924         846      (37)      2,018
 Deal-related          437        438        410        403        1,688
amortization ^(1)
Adjusted operating       $      $        $       $      $    
income                   722      1,362     1,256     366        3,706
Adjusted operating       3.9%       7.2%       6.6%       2.1%       5.1%
income %
(1) Amortization of acquired intangible assets related to business
combinations and asset acquisitions
*All information based on continuing operations.

SOURCE Perrigo Company

Website: http://www.perrigo.com
Contact: Arthur J. Shannon, Vice President, Investor Relations and
Communication, +1-269-686-1709, ajshannon@perrigo.com; or Bradley Joseph,
Senior Manager, Investor Relations and Communication, +1-269-686-3373,
bradley.joseph@perrigo.com