Perrigo CEO: Why Business is Growing

Tuesday, 27 Sep 2011 | 6:42 PM ET
Perrigo CEO Talks China Biz
Mad Money host Jim Cramer takes a look at Perrigo, which develops, manufactures and distributes private label goods to retailers. Joseph Papa, chairman, president & CEO of Perrigo, weighs in. "Our products are popular in both bull and bear markets," he says.

As cost-conscious consumers trade down to cheaper store brands, private label drug maker Perrigo has benefited, the company’s CEO told Cramer Tuesday.

“The challenges in the economy are forcing more and more people to move towards the store brand private label,” Joseph Papa said.

And that has resulted in a significant growth in their business, he added.

Even when the consumer starts to feel more confident, he expects them to stick around. He said 91 percent of the time people stay with the store brand after making the switch, even when the economy gets better.

The company is also focusing on international opportunities, Papa said, and is looking to expand in Europe and Asia.

“We think there’s a great opportunity to bring our products … to the rest of the world [and] geographically expand our footprint,” he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.