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Perrigo Reports Record Third Quarter
Date:5/7/2009

payment of $8.5 million. The decrease in net sales was also due to an $8.2 million reduction in non-product revenue, as well as pricing pressures due to continued competition in the marketplace for generic drugs. These decreases were partially offset by new product sales of approximately $11.0 million, along with an increase in sales volumes on the Company's existing portfolio of products of approximately $7.0 million.

On March 17, 2009, the Company announced that its partner Cobrek Pharmaceuticals, Inc. (Cobrek) had filed an Abbreviated New Drug Application (ANDA) for Clindamycin Phosphate Foam 1%, a generic version of Evoclin(R) Foam 1%. The Company believes that Cobrek is the first to file an ANDA with a Paragraph IV certification against Evoclin(R). Evoclin(R) (clindamycin phosphate) Foam 1% is a topical antibiotic indicated for topical application in the treatment of acne vulgaris, and had sales of approximately $44 million for the 12 months ended January 2009, as measured by Wolters Kluwer Health.

API

The API segment reported third quarter net sales of $31.0 million compared with $37.8 million a year ago. The decrease was due primarily to the absence of a one-time $4.9 million accrual reversal related to a long standing customer contract negotiation recognized in fiscal 2008, along with approximately $2.0 million resulting from unfavorable changes in foreign currency exchange rates. Operating income was $4.3 million, compared with $6.0 million last year, reflecting the aforementioned accrual reversal, as well as unfavorable foreign currency exchange rate changes, partially offset by favorable contributions from new products, pricing improvements and lower operating expenses.

For the first nine months of fiscal year 2009, net sales decreased 13% compared to fiscal 2008. This decrease was due primarily to a decline of approximately $16.7 million in sales of three key products, the abse
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SOURCE Perrigo Company
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