With its makeover complete, Perrigo is ready to lead in the $400 billion “self-care” category. The Dublin, Ireland-based company—which has North American operations based in Michigan—has shed underperforming businesses and acquired others as part of its strategy to become a leader in this fast-rising space that encompasses wellness, health and personal care. The company is bullish on its prospects based on consumers’ growing interest in proactive measures to live healthier lifestyles.

Active in many markets—from oral care and supplements to digestive and respiratory health —skin care has emerged as a new major category for Perrigo as it moves into its next phase. 

“As a newly transformed consumer self-care company, our team is intensely focused on the next phase of our plan aimed at optimizing our commercial operations through our supply chain reinvention program and accelerating profitable growth through organic growth and successful integration of recent acquisitions,” noted Perrigo President and Chief Executive Officer Murray S. Kessler.

Kessler and other company officials detailed Perrigo’s 2023 to 2025 to “Optimize and Accelerate” strategic plan during its virtual investor event on February 28. The new plan follows Perrigo’s four-year transformation effort in which its shifted from healthcare to a “pure-play consumer self-care company” through several major actions, including a major reconfiguring of its product portfolio.

Perrigo completed multiple transactions, selling off select businesses and acquiring others. The effort culminated with the completion of its $1.9 billion acquisition of Héra SAS (HRA) in 2022.

When the deal was announced in September 2021, HRA was one of fastest-growing growing over-the-counter (OTC) companies globally, with “category-leading” brands including Mederma, the leading US OTC scar care brand, and Compeed, a global OTC brand best known for treating blisters, bunions, calluses, cracked heels and most recently, cold sores.

They join others in the Perrigo stable including Biodermal, Emolium (acquired from Sanofi in 2020), Dermalex and Aco, a high-profile beauty brand based in Stockholm.

Combined, skin care is now Perrigo’s second largest and fastest growing category (see chart), according to officials..

Operations Breakdown

Perrigo’s net sales grew 7.6% to $4.5 billion in 2022.

The company reports its results in two categories: Consumer Self-Care Americas (CSCA), mainly the US and Canada, and Consumer Self-Care International (CSCI), primarily Europe and Australia.

CSCA’s net sales rose 8.6% to were $2.9 billion, with skin care net sales rising 2.2% to $187.8 million. Perrigo attributed the gains primarily to the addition of HRA, which was partially offset by the divested ScarAway brand and discontinued products.

CSCI’s net sales were $ 1.5 billion, with skin care net sales rising 14.2% to $432.2 million. Skin care performance was inclusive of a 18.0% unfavorable effect of currency translation, driven primarily by increased market share at Aco. In fact, Perrigo reported that extensions within the Aco brand helped contribute to the $122.8 million it added to its coffers in fiscal 2022 solely from new products launches.

Perrigo, which also has a sizeable private label operation, has also bolstered its access to new ingredients that have shown solid potential in skin care and other wellness markets. For instance, in 2020 it took a minority stake in Kazmira, a US-based CBD company. Perrigo said this alliance’s first “cosmetic executions” are in the pipeline now, with a skin care product launch expected as early as 2024.

Perrigo has also expanded key R&D staff, too. Recent hires include Michelle Bateson as VP of CSCA R&D and scientific affairs (October 2022). Further, Sharon Goodall will join the company next month as VP of CSCI R&D/innovation and scientific affairs.

Self-Care: A More Crowded Space

Eyeing increased revenues from its stronger position in the global skincare market, Perrigo is now in a more crowded category. Company officials noted that since announced its focus on self-care in 2019, an “expanding universe” of pure-play self-care companies has emerged. Its competition includes companies such as Prestige Brands, Haleon (the divested GSK Consumer Healthcare business that includes oral care brands like Sensodyne, supplements and pain relief) and Kenvue, the name of Johnson & Johnson’s new standalone consumer health operations.