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[PERRIGO LOGO] NEWS
RELEASE
[PERRIGO LETTERHEAD]
FOR IMMEDIATE RELEASE
PERRIGO COMPANY DISCONTINUING THE MARKETING OF PRODUCTS
CONTAINING PHENYLPROPANOLAMINE HYDROCHLORIDE (PPA)
ALLEGAN, Michigan, -- November 8, 2000 -- The Perrigo Company (Nasdaq:
PRGO), the nation's largest manufacturer of over-the-counter (OTC) and
nutritional products for the store brand market, today announced that in
response to recommendations from the Food and Drug Administration (FDA) it has
halted shipments of all products containing the ingredient Phenylpropanolamine
(PPA), effective immediately. The ingredient is used in diet aids and in cough
and cold products that Perrigo manufacturers as store brand equivalents to
products such as Dexatrim(R), Dimetapp(R), Robitussin(R) and Triaminic(R).
Following the Nonprescription Drug Advisory Committee's recommendation
that PPA should no longer be considered safe, the FDA on November 6, 2000 took
steps to remove PPA from all drug products. The FDA notified companies that they
intend to classify PPA as nonmonograph, or not generally recognized as safe and
effective for OTC use. At the same time, FDA also requested that companies
voluntarily discontinue marketing any products containing PPA. Further, FDA
issued a public health advisory concerning the risks associated with PPA.
David T. Gibbons, Perrigo President and Chief Executive Officer,
stated, "Although PPA has proved to be a safe and effective ingredient in our
OTC medications for nearly 40 years, the Company's first priority is consumers'
health. For this reason, Perrigo is taking actions in step with FDA's
recommendations." The value of Perrigo's on-hand inventories and the cost of
disposal and reformulation is estimated to be between $15 and $19 million,
resulting in a charge of $0.13 to $0.16 per share in the fiscal year second
quarter ending December 30, 2000. In addition, the effect of not having
replacement products available for sale will reduce earnings an additional $0.05
to $0.06 during the remainder of fiscal 2001, with $0.02 of that coming in the
second quarter. The actual charges could be more or less than the current
estimates. The Company had previously provided earnings guidance of $0.14 to
$0.16 per share for the fiscal 2001 second quarter and $0.42 to $0.46 per share
for the full year ending June 30, 2001.
Mr. Gibbons concluded, "At this time, we foresee little or no long-term
impact resulting from the discontinuance of products containing PPA since we
will work as quickly as possible to reformulate the affected products. We
anticipate the majority of these reformulated products to be ready in time for
next year's cough and cold season."
Perrigo Company is the nation's largest manufacturer of
over-the-counter (non-prescription) pharmaceutical and nutritional products for
the store brand market. Store brand products are sold by national and regional
supermarket, drugstore and mass merchandise chains under their own labels and
compete with nationally advertised brands. The Company's products include
over-the-counter
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pharmaceuticals, such as analgesics, cough and cold remedies, antacids,
laxatives, feminine hygiene and smoking cessation products, and nutritional
products, such as vitamins, nutritional supplements and nutritional drinks.
Visit Perrigo on the Internet at 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. Please
refer to pages 23-27 of the Company's Form 10-K for the year ended July 1, 2000
for a discussion of certain important factors that relate to forward-looking
statements contained in this press release. Although the Company believes that
the expectations reflected in any such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to be
correct.
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