Good morning, my name is Cassandra, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Perrigo's Calendar Year 2016 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. I will now turn today's conference over to Bradley Joseph, Vice President of Global Investor Relations. Please go ahead.

Good morning. Welcome to Perrigo's first quarter 2016 earnings conference call. I hope you all had a chance to review our press release which we issued earlier this morning. A copy of the release is available on our website, as is the slide presentation for this call. Joining me today is Perrigo's Chairman, Laurie Brlas; Chief Executive Officer, John Hendrickson; and Executive Vice President-Business Operations and Chief Financial Officer, Judy Brown. I'd like to remind everyone that during today's call, participants will make certain forward-looking statements. Please refer to the important information for investors and shareholders and Safe Harbor language regarding these statements in our press release issued this morning. In addition, in the appendix for today's presentation, we have provided reconciliations for all non-GAAP financial measures presented. Turning to slide three. Next, I'd like to walk through the agenda for today's call. Laurie will begin by discussing Perrigo's recent CEO transition process from the perspective of Perrigo's Board of Directors. Next, John will walk through his priorities and overarching management philosophy and then, will discuss his perspectives and insights on the future direction of Perrigo by segment. Judy will then walk through the financial results for the quarter and guidance for calendar 2016. Finally, John will discuss the team's philosophy around guidance and what you should expect from Perrigo going forward, concluding with Q&A. I would now like to turn the call over to Perrigo's Chairman, Laurie Brlas.

Thank you, Brad. Good morning everyone and thanks for joining us today. I have been a member of Perrigo's Board of Directors since 2003 and have the privilege to serve on both the audit and remuneration committee. During my tenure on the board, I've come to deeply appreciate the strength of this company and its management as well as our ability to value while effectively addressing challenges. I'd like to take this opportunity today to talk with you about our CEO transition process. As previously announced, following our robust succession planning process, on April 25, the board of directors unanimously selected John Hendrickson as Chief Executive Officer. Speaking on behalf of the entire board, I can assure you that the choice to elevate John was clear. John has been essential to the company's success in each of his roles with Perrigo. John led and shaped the operational backbone of the organization, designing a vast and multi-faceted infrastructure to produce and supply a broad and complex portfolio of products. He showed distinctive leadership as Head of our Consumer Healthcare business from 2003 to 2007. During that challenging period when we were grappling with the movement of pseudoephedrine, which is the largest product in our OTC portfolio at the time behind the counter, John led the team to increase revenues. All functions reported to him including R&D, regulatory, sales, marketing and operations. Since 2007, John has served as EVP and Head of Global Supply Chain until his promotion to President last year. His manufacturing and supply chain leadership, exceptional operational track record, and ability to connect with and get the most out of his people give us great confidence in our decision to promote John to President, as well as our recent decision to appoint him to CEO. In John, we identified…

Your first question comes from Louise Chen with Guggenheim.

Hi. Thanks for taking my questions. So, first question I had here was just for John and Judy in terms of your philosophy of financial guidance. Has that changed going forward? And if so, how? Secondly, a question that we've gotten pretty often is regarding your debt covenants and coverage ratios. I was wondering if you could address that. And then last thing, just how we should think about growth in margins for Omega in 2017 and beyond. Thank you. John T. Hendrickson - President & Chief Executive Officer: Great. Thank you very much and appreciate your question. I think I will tackle the guidance question and I'll probably toss the next two to Judy to deal with. So from a guidance, as I've said, my philosophy is to be very open clear with our guidance, with our expectations, with our growth, and then drive our internal team relentlessly to meet and exceed that guidance. So, very clear on what we're trying to do and where we are trying to set the bar. Judy, if you want to take the debt covenants and the growth. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Right now, without reconciling EBITDA on the call, suffice it to say, our leverage ratio right now is in the high 3xs. With the adjustment we just talked about, the guidance, not exactly where we had anticipated to be at this point with the results in Q1 on delevering, but suffice it to say committed still to our pay-down in Q4 and with a strong cash flow and continued growth in EBITDA continuing our deleveraging path. On the coverage side, we are very solid in our covenant coverage. So, no issue there whatsoever. John T. Hendrickson - President & Chief Executive Officer: Very good. Thank you, Judy.

There was a question on... Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: The report?

Yeah, the Omega – the margins for Omega. John T. Hendrickson - President & Chief Executive Officer: All right. I would... Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Expectation? John T. Hendrickson - President & Chief Executive Officer: Branded Consumer Healthcare margin expectations for 2017. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Pardon me. Sorry, I missed the third part. Maybe I'll just make a comment on that. As we stated, we expected operating margin not to see much growth for this year on a year-over-year basis. In fact, given a soft first quarter, mid-teens throughout the rest of this year. And going into next year, we're not giving 2017 specific guidance yet. But suffice it to say, for your modeling purposes, assuming that same mid-teens would be appropriate at this time as we did our long-range planning that became part of the analysis that was done in the last few weeks that I just mentioned earlier. John T. Hendrickson - President & Chief Executive Officer: Yeah. And I would add to that, we see good strength in the brand, good strength in the markets. We want to continue to invest in our advertising and promotion campaigns to drive those products. And so, we'll do that prudently to manage the bottom line.

Next question, please?

Your next question comes from the line of Gregg Gilbert with Deutsche Bank.

Thank you. First, thanks for being on the call, Laurie. I want to start with you. Is there anything investors should know about the circumstances around Joe's departure so we don't have to rely on media or speculation? And sorry to look backwards, but can you talk us through how the board handled the Mylan situation and assure investors that all options were fully explored? And then for John, the issues that have weighed on Perrigo in recent times seem to be a blend of expectation setting, execution, as well as strategic decisions that have been made in the past. So, my question for you is, what changes do you plan to make? It seems like setting expectations at least on paper should be the easiest part of that, but perhaps you can talk about specific changes at the execution model and whether or not you agree with the strategic sort of platform. It sounds like you believe the platform is intact and correct and it's about execution, but would really like you to express whether you sort of agree with all the pieces at Perrigo and whether they're all core, et cetera. Thanks, guys. John T. Hendrickson - President & Chief Executive Officer: Yeah. Thanks, Gregg. Good question. Laurie, why don't I have you pick up the first one first related to the board and Joe?

Sure. Thanks, John. First of all, I'd say Joe made a decision to resign to pursue another opportunity, and you'd have to ask him of why he did that and what his thought process was. But when he made that decision, the board looked forward as we need to do and we felt it was an easy decision. As I mentioned, we were very clear that John was the right person to elevate to the role. And I know John and Judy can tell you this, it's a very active engaged board that spends a lot of time with them. We spend a lot of time talking about discussions. So, we were very comfortable that John was the right person and moved on from there. As to the Mylan question, I'll go back to we're pretty active engaged board. We spent a lot of time during the period of time that was an active event. And that time with John, Judy, Joe, all of the advisors evaluating what the different opportunities were that were available to the company and we continue to feel that we made the right decision. John T. Hendrickson - President & Chief Executive Officer: Thanks, Laurie. And Gregg, I'll take the other one as you directed them to me, the other one. First of all, going back to kind of expectations, guidance, et cetera. My philosophy is – again, I'll try to be as transparent as possible. I want the expectations we lay out to be realistic, numbers we feel we can deliver, and then drive our team to deliver and beat those every day. So, I'll state that and let that stay to that. I think on the execution side, we have a great team. We have a good executional platform. We're trying to put strong operators in charge of all of the business segments that we have that know how to drive the results of the business all the way through to operating income and after-tax income. I, as you know, Gregg, am a operator at heart delivering how do we sell, how do we market, how do we add organic products to the truck, how do we continue to deliver more through our BCH platforms. I feel we have great platforms in place. I feel there are things we can do to continue to add products and what I call bolt-on acquisitions. So, not necessarily transformational but bolt-ons into our current platform. And by doing that with the infrastructure, I feel we have a good growth platform ahead of us. And I think our strategy fits right around those cores. I think we're currently in great areas to operate, great areas to deliver increased value, getting back to the things that Perrigo does very well.

Thanks. John T. Hendrickson - President & Chief Executive Officer: Thanks, Gregg.

Your next question comes from the line of Randall Stanicky with RBC Capital Market.

Great. Thanks, guys. John, Judy, I was just hoping that you could help us get a better sense of recent changes. Is it fair to assume that most of these challenges hit between late March and late April? And then just help us better understand what happened over that one-month time period relative to chain of events with respect to Omega and the generics businesses. Specifically, Judy, maybe you could just comment, how much of the generic impact was competitive entries versus bid cycles? And with the 6% erosion that you've built in, how can you get us comfortable that that's not going to continue, that we now have good visibility into that business? And then the quick follow-up for John, is it fair to assume from your prepared comments that you view TYSABRI as a core asset and there's not going to be review to divest that business? Thanks. John T. Hendrickson - President & Chief Executive Officer: Thank you. Why don't I start out? First of all, on the big picture-wise, when we look at the big segments, Branded Consumer Healthcare, Rx business, et cetera, a lot of those changes, they all kind of came and materialized stronger within the first quarter and many of them more evident towards the end of the first quarter. So, without giving dates, they all happened at that time period and continued. And as we looked at the year, some of them lingered on and so we changed our guidance based on what we saw there. And I'll let Judy jump in to the chain of events or anything else there that she wants to add, then I'll come back to TYSABRI. So, Judy, do you have anything? Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: So,…

Judy, just a quick follow-up. I mean, the gross margin was stronger than I think a lot of people would've expected, including us, just given what you called out as some of the pressures. Is that realistic going forward to hold at 61%? Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Our expectations for the year and the adjusted operating margin framework I gave you would imply that that's the case because we're still making the R&D investment. So, if you back up, if you work backwards, you would say that that would be a reasonable assumption. John T. Hendrickson - President & Chief Executive Officer: And related to TYSABRI, I'll step back, first of all, and kind of give you the big picture perspective. I think TYSABRI is a great product from a healthcare standpoint, serves a tough disease, a tough population. I think the company that owns it, markets it, sells it, they're a great company. I have high respect for them. For me and my perspective, it's not a strategic asset for Perrigo. It's not something we're looking to invest a bunch of money in or get into more products related to it. It is a financial asset. It has great cash flow. It has great other benefits around it that enable us to do other things. I am open every day to different ways of thinking about TYSABRI, other different ways to utilize that financial asset to do other things within our business or for a shareholder base. So, I'm very open, but I view it as a financial asset, not a strategic investment for us.

Great. Thanks, John. John T. Hendrickson - President & Chief Executive Officer: Sure. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Next question. Can we put a limit to questions to the one going forward? Thank you. Now, we have (45:20) one set of question, Brad.

Your next question comes from the line of Elliot Wilbur with Raymond James. Elliot Wilbur - Raymond James & Associates, Inc.: So, now you implement the one-question rule.

Oh, but you always ask the good long ones, Elliot. Go ahead. Elliot Wilbur - Raymond James & Associates, Inc.: Yeah. I've never cheated on airtime, that's for sure. Thanks. And congratulations, John, and congratulations to Judy. And look forward to working with you, John... John T. Hendrickson - President & Chief Executive Officer: Thanks, Elliot. Elliot Wilbur - Raymond James & Associates, Inc.: ... in the future. Judy, part of your prepared commentary, you mentioned something that sort of caught my attention and I want to just ask you to elaborate on it, specifically talking about the Consumer Healthcare Business and some negotiations and concessions with the customer base that, obviously, as I take is you guys giving up something in order to secure shelf space or protect margins. And I just wanted you to maybe elaborate on that a little bit. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Absolutely. Good catch, Elliot. Well done. We've frequently talked about our overall basket of Consumer Healthcare products being able to maintain stable pricing and that continues to be the case. But I have always said very clearly that in periods of time when we're not launching big new products, that dynamic becomes more challenging for our Consumer Healthcare team. They do yeoman's job out in the field every day sitting with the buyers at important, large, sophisticated retailers talking about overall pricing. So we don't have the ability, of course, to set pricing to the consumers on the shelf. That's the determination by the retailers. But we work actively on being effective in our own buying, having an effective supply chain to mitigate any pricing pressure seen for the Consumer Healthcare team. And of course, when we launch new products, it gives leverage to…

Thanks, Elliot. John T. Hendrickson - President & Chief Executive Officer: Thanks.

Your next question comes from the line of David Risinger with Morgan Stanley. David R. Risinger - Morgan Stanley & Co. LLC: Yes. Thanks very much and I want to also congratulate you both, Laurie and John, on your new roles. So, Laurie, since we have you on the phone, I was hoping that you could provide some more color on a key question that we've received from investors, given the media stories a month ago on the CEO contract and that question is why did the board release Joe Papa from his contract without greater penalties in the wake of Perrigo's issues over the past year? And then if I could drop one in for John, given your new role, just could you comment briefly on Perrigo's long-term organic revenue growth target of 5% to 10% and whether you expect to update that or how we should think about that at this point? Thank you. John T. Hendrickson - President & Chief Executive Officer: Great. Thanks. I can certainly also start out and then I'll toss over to you, Laurie, on Joe's departure and where we ended up with that. There are rumors out there that we've got rid of his non-compete. Those weren't true. We did not. We actually fine-tuned his non-compete. Valeant and Perrigo do not compete today on products, et cetera. So, there's very few fringe products. We actually fine-tuned his non-compete agreement, so that it's more aligned with categories within Perrigo that he could not compete in. And so we felt good about that negotiation. So, other rumors about what Joe got when he left, et cetera, he was basically paid up until his last day of employment and nothing going forward. So, Laurie, I don't know if you have anything to add to that, but I just want to clarify some of those rumors that were wrong out there in the marketplace.

Yeah. Thanks, John. And I really appreciate the question, David, because the board spent quite a bit of time ensuring value for the shareholders and focusing on the non-compete. It was amended; it was not waived. He did not get out of it. As John said, we felt that we made it absolutely clearer that during in the next 24 months, Joe remains prohibited from really serving as a significant competitor to Perrigo. So, we felt very good about that. And he did walk away from any of his unvested shares or so forth, so we think that we did the right thing for the shareholders and I really appreciate you asking the question so that we can clear up some of those rumors. John T. Hendrickson - President & Chief Executive Officer: And David, on the long-term plan, what I will do is walk you through the process of how I'm going to kind of work our team through it rather than give you the number today because I'm not prepared to say here's what the next three years, four years look like. We are getting together here over the next few weeks and next month and then presenting to the board our perspective of our long-range plan, which goes out and looks at that. And I will commit to you and everyone else that in the summer timeframe, we will be coming back to folks with our updated long-range plan and outlook. David R. Risinger - Morgan Stanley & Co. LLC: Thank you. John T. Hendrickson - President & Chief Executive Officer: Thanks.

Your next question is from David Maris with Wells Fargo.

Hi. A couple of questions. First, on the capital deployment, do you think that a continued M&A strategy in Europe's compatible with what you say is a principle of returns to shareholders since it appears that return on equity and assets and ROIC have weakened since you started that strategy? And then separately, 24 competitive launches against the topical product line, can you quantify that in dollars? And what's this trend related to? Is this the FDA pushing more approvals? And maybe just any comments on the vulnerability that you might have on that happening with more products going forward. John T. Hendrickson - President & Chief Executive Officer: Yeah. Thanks, David. Let me take some of those, then I may toss over to Judy for a couple of others. First of all, capital deployment and return to shareholders. As I go through again and think about priority, and I lay this out trying to mentally get these clear, I think organic growth, great way to do it, great platform, makes sense. I believe in Europe, we have a good platform. We're trying to put more operating structure into it, think a little bit about the operating entrepreneurship out of it and bring some structures into it, but it is a good platform. The GSK products that we bought a few months back are performing well in those markets. The nicotine franchise, we're on the biggest nicotine franchises, nicotine replacement therapy franchise in the U.S. And now having that in Europe, a great natural extension for our core consumer businesses. So, I do believe that adding on core bolt-on acquisitions within the infrastructures can have a good return for shareholder value. So, I'm a believer in that. And then, ultimately, what else do we do with the cash and the value that we're generating are the other ways of returning that value to shareholders. But I would put them in that order because I think that's a priority that we can deliver value to the group. Why don't I turn over to Judy on the 24 and the escalation, et cetera, on what we've seen from the approach. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: And David, I just called that out. I'm not quantifying the specific dollars versus our expectation in Q1 that the 24 launches had on our bottom line this quarter. But what I – the reason I did call it out is because compared to probably every other quarter since we've owned Rx, it was an escalation, a rapid escalation of approvals and changing competitive landscape that I just wanted to call out. So, faster than we had anticipated and we have launches coming up in the remainder of the year. This particular quarter, the dynamics for the competition was different than ours. So, that's the only reason I called it out.

Thank you. John T. Hendrickson - President & Chief Executive Officer: Thanks, Judy. Next question?

Your next question comes from David Steinberg with Jefferies.

Yeah, thanks. John, in your prepared remarks, you mentioned you'd put a new leadership team into the Omega business, one that had been very successful with bolt ons. Just curious, how can you get us comfortable that you can do the same with Omega? After all, it's a very large acquisition, over $1 billion in sales versus bolt on. They have mom and pops in Europe, it's multiple countries, they don't have consolidated chains. How can you get us comfortable that that integration will go well and that you have a handle on the business? And related to that, during the Mylan saga, apparently STADA had changed their business with Omega and I think Mylan was blamed somehow, but we never got a full answer on what happened with STADA. And will they come back as they were before? And finally, can you give us an update on the FLONASE launch? Thanks. John T. Hendrickson - President & Chief Executive Officer: Yeah. So, thank you. Thank you, David. Let me try and go in order. First of all, I do, as you said, have great confidence with the team and the initial actions we've taken with the Omega, with Branded Consumer Healthcare, as we call it in Europe. I won't go back to go through all of Sharon's accolades, but his integrity, his ability to drive performance to the operating line, he's proven himself. So I'm confident in him. I'm confident that we won't need to add more leaders and add more things to drive it, but I think we're off to a great start. We also added one of our experienced financial leaders to that business about two months ago. He has already begun a much stronger financial planning, financial control acumen to the BCH team, so I feel…

And just the update on FLONASE? John T. Hendrickson - President & Chief Executive Officer: Oh, FLONASE. So we are still planning on launching FLONASE, awaiting for our final approval and have retailers, et cetera, ready to launch and ready to go. Product is in our docks ready to ship as soon as we get our approval.

Thanks very much.

Your next question comes from Marc Goodman with UBS.

Good morning. You mentioned FLONASE just now. You also had mentioned ProAir. You pushed out the Mucinex 600mg. Is this just being more conservative across the board, or is there some reason you can't launch ProAir now in this calendar year? And Mucinex, I guess I understand you're just being more conservative. Just give us a little more flavor on that. And then Omega, you mentioned lower lifestyle and natural health, VMS, I guess, products was key in the quarter and for the change of the guidance. Can you just give us a sense of how big these products are? What was the change? Thanks. John T. Hendrickson - President & Chief Executive Officer: Yeah. So first of all, we talked about the new products, FLONASE, ProAir, Mucinex. I don't like to say conservative, I'd rather say realistic. We're trying to put realistic expectations out there. Could some of those still hit in the year? Yes, they would, but they're not planned. FLONASE, we still have in our plan. Mucinex, we moved out. Are we still aggressively working to get that back to market? We are. ProAir was planned to launch right at the end of the calendar year. And given all the dynamics, we've decided to move it out of the year. Are we still working to try and drive it? We are. It's a delay on when we'd expect it, but we're still trying to drive that to completion. Related to the Branded Consumer Healthcare and Omega products, the – and Judy, I don't know if you want to talk about that related to the impairment side and the issues related there that we took on those areas. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Certainly. Maybe – let me just give…

Thanks, Judy.

Next question, please.

Your next question comes from the line of Annabel Samimy with Stifel. Annabel Samimy - Stifel, Nicolaus & Co., Inc.: Hi, guys. Thanks for taking my question, and congratulations on your appointments, myself for you. I guess I want to look bigger picture at the generics business. It's always been characterized, given that it's topical, as a higher barrier type of generics composition. And that doesn't seem to be the case at all this quarter, given you had so many competing products that got approved. So how should we really think about your generics business from this point forward? Is it going to be – is topicals now becoming a more commoditized business, or is this just a fluke in terms of the backlog the FDA started approving? And do you have the right composition of assets there? And then in terms of Omega, just longer-term it's always been characterized as the 5% to 10% growing business. And also, the strategic rationale was to really be less of an operating synergy play but more of a revenue synergy play. And so does that still stand? Do you still have a lot of opportunities for revenue synergies in the longer term, two to three years out? Thanks. John T. Hendrickson - President & Chief Executive Officer: Great. Judy, why don't you lead off on the first question? Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Sure. That was a multi-part question. Annabel Samimy - Stifel, Nicolaus & Co., Inc.: But I didn't breathe. I didn't breathe between the questions. John T. Hendrickson - President & Chief Executive Officer: No. No commas. No commas. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: So that's a tip for everyone else. If you can…

Your next question comes from Chris Schott with JPMorgan.

Great. Thanks very much. Just a higher level question. I guess in light of Joe's departure and the recent performance in the business, and I guess this is for John and Laurie, are you reviewing the overall portfolio? I guess my question here is do you have the right assets in place? And is this maybe a time to look more carefully at the portfolio and perhaps, even more refocus on a core group of assets and divest some franchises? And if I can just sneak in a quick follow-up on just the Rx business, and Judy, sorry to re-ask this, but I'm still just not clear exactly why. But why isn't the business seeing more margin erosion given the competitive dynamics and pricing? It seems like many of your peers were seeing pricing competition that's translating to very steep margin erosion. And I'm just – I'm trying to understand why that isn't the case with Perrigo, and then I would think lower prices would drive down margins here. Thanks so much. John T. Hendrickson - President & Chief Executive Officer: Great. Well, let me – Laurie, I'll jump in. And clearly, add something, with Joe's recent departure. I would say the Board and I are very aligned on looking at every aspect of the business and figuring out if there's business segments, product lines, anything that does not fit or there's a different value that we should be looking at. I'll say it for me and I won't speak for who are in the Board, but there is no – I'm not married to any business segment that isn't delivering its fair share of value. We did that with vitamins. We did it with the India business segment we had that we put up for sale. We did it with a couple of the brands in Omega that we put for sale because they weren't adding value to portfolio. So I'm very open to looking at that and open to listening to other ways of thinking about it. Big picture, when I step back, there are certain parts of our business that are very synergistic together, and even though they seem as separate segments, do add value to each other. And so when we think about standalone or breaking up all the parts, a lot of them do connect very well together to give us ultimately more value than they would separated. But still, very open and interested to thoughts, comments from anyone. And the board is very open to that also. Laurie, I don't know if you have anything to add to those comments on that.

I don't know that I could a whole lot, John, but I would just echo what you said. The board is very interested in learning about and hearing about different options, and very open to considering all options that will drive shareholder value from that perspective. John T. Hendrickson - President & Chief Executive Officer: Great. So let me jump on the second part of the question and then, Judy, please jump in. If I step back and look at it, we certainly have had pricing dynamics that weren't as expected or weren't as desired, all of those things. When we step back and look at our portfolio of products and mix that we have, it's a pretty profitable mix. So despite – I know it sounds contradictory, but we've had pricing pressures, price and margin have come down, but when you look at our whole basket of mix within our Rx business, it is still a very profitable mix as you see in the margins. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: And we've had the acquisitions completed at the end of 2015 and beginning of 2016, which have contributed attractive margins to the basket as well. So on a year-over-year basis, there are pluses and minuses. On a quarter-over-quarter basis, there were the pricing pressures that we spent a lot of time on already this morning, offset in large part from the margin perspective with the acquired products. So the basket's still working in the portfolio. On a margin perspective, it's still working well.

Thank you, Judy.

Your next question comes from the line of Sumant Kulkarni with Bank of America Merrill Lynch.

Good morning. Thanks for taking my question. You have a small branded specialty pharma effort going, is it fair to characterize that as being on the back burner now? And is the infant nutrition business meeting your criteria? John T. Hendrickson - President & Chief Executive Officer: Yeah. So why don't I start from the back first? First, the infant formula business is meeting our criteria. It is growing. If you go back a year or two ago, we converted the whole business to a new marketing presentation, et cetera. Since we have re-launched all of those products, it has done very well. Good movement at retail. We are very pleased with where it's going and the upside potential of that business. So in my mind, it is meeting our criteria. It's well into our consumer franchise. Related to the small branded, Judy, maybe I'll toss that one back to you on the small other investments we have other than TYSABRI. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Within our branded portfolio? John T. Hendrickson - President & Chief Executive Officer: Yes. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Branded Rx portfolio? It is a nascent business. Doug Boothe and his team are continuing to look at opportunities to expand their basket of products. Very specialty focused. Not trying to go out to product categories where we have to have thousands of sales folks to cover the United States. But being very targeted and looking for also additionally, products that would fit into our Durham business where we could have a whole lifecycle management of branded to generics, of course, to our OTC businesses. So still small, but looking for products that can be tucked into that and utilizing the sales forces we have today.

Thank you.

Next question please. John T. Hendrickson - President & Chief Executive Officer: Thank you.

Your next question comes from the line of Douglas Tsao with Barclays.

Hi, good morning. Thanks for taking the question. So just first, Judy, maybe if you could help us in terms of the sequencing for the Consumer Healthcare business through the rest of the year. I mean, in terms of the guidance, it seems to be relative – the rest of the quarter seems to be relatively flattish, maybe up a little bit from the first quarter, but should we expect it to be down and then back up in the second half? And then just in terms of ProAir, did you receive a complete response letter, or do you have a target action date from the FDA for that launch? John T. Hendrickson - President & Chief Executive Officer: Judy, why don't you talk the healthcare? Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Sure. On a relative basis, so as I think about the year in Consumer Healthcare, in some ways it's similar to the way we tried to guide you – I would call it the arc of the year for the full company. The Consumer Healthcare business will have a bigger second half. Their new product launches are concentrated in the back half of the year. So that means that it's a build over the course of the year. Investments continue over the course of the year. And if you recall, the June quarter for them last year, as well as for Branded Consumer Healthcare, were quite big in the June quarter of 2015. So it was a huge quarter. So, expect the comps in CHC on a year-over-year basis to be more challenged, again, because of the last year dynamic. New products launch up in the second half, growth continues so that CHC line, to your point, I think you called it out as a dip and then pick back up. And that's a reasonable estimate. And that's why we also made that comment. CHC is our largest business. We made that comment about expect approximately 55% of EPS to come in the second half of the year. John T. Hendrickson - President & Chief Executive Officer: Related to the ProAir product, we did – basically we got some comments from the FDA. We're working to address all those comments and concerns and get that information back in their hands. And I'll just leave it at that due to confidentiality at this point.

Okay. Thank you very much. That's very helpful. John T. Hendrickson - President & Chief Executive Officer: Thanks.

Your next question comes from the line of Jami Rubin with Goldman Sachs. Jami Rubin - Goldman Sachs & Co.: Thank you very much for the opportunity to ask a question. And John, I'm looking forward to meeting you and congratulations on your new opportunity. John T. Hendrickson - President & Chief Executive Officer: Likewise. Thank you. Jami Rubin - Goldman Sachs & Co.: Judy, if you can just – both of you guys take a step back at the generic drug business because it seems that the companies that got caught off guard on Rx pricing were companies with concentrated portfolios. Certainly, your portfolio is mostly derm products, which has benefited from unusual price inflation. Typically, generic drugs are deflationary, but you've benefited from inflationary products. I mean, when you take a step back, clearly, the environment's changed. It seems that the FDA is approving more drugs in this space that's creating competition, which is pushing down prices. And at the same time, consolidated buyers are pressing for a broader depth of portfolio. So it just seems that at the end of the day, the companies that were caught off guard had concentrated portfolios to those that weren't, and who had anticipated a low-to-mid single digit decline in prices have broad global portfolios. John, your portfolio is highly concentrated all in the U.S. While that has clearly served the company well over the past couple of years, going forward, it does appear that the environment is changing for your type of portfolio. What do you see as a possible strategic option for this business? Does is still make sense to keep for Perrigo? And is this a one-time re-basing or do we worry about those margins eventually coming back down to where Teva's and Mylan's are? Or how do…

Thank you. Next question, please.

Your next question comes from the line of Tim Chiang with BTIG.

Hi, thanks. I wanted to just go back to the prescription pharma business. If I look at just sort of the overall market that you're in, in topical, it did look like you suffered from much more price erosion on your base business. It looks like you lost about $50 million in the first quarter or in this quarter on sales. And then you're still forecasting about what, $1.2 billion of prescription pharma sales which would reflect around about 11%, 12% year-over-year growth. So could you guys sort of provide a little bit more color on how you get to that figure for the full year? Either that's going to require more acquisitions or you're going to have to have a lot of incremental new prescription products coming online. Any color would be greatly appreciated. John T. Hendrickson - President & Chief Executive Officer: Great. So let me kind of start, first of all, and then I'm going to go back and reiterate. We think it's a great business. We did experience more pricing in Q1 and adjustments there. We do expect about 6% pricing in our model going forward and feel that is the right number. And we're comfortable with where things are at, but that number at this time makes sense for us. As we look at the overall growth, we've got new products and product mix that are all part of that go-forward projection and lead to that mix of products, that blend of gross margin operating income for that segment. Judy, I don't know if you have any other perspectives or details to add to that? Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: I just want to make sure – just to clarify one point that confuse me. Our number is approximately $1.2 billion in revenue expected in that segment this year includes announced acquisitions, Entocort, tretinoin. It include launches. Like John said, we put ProAir out. But other product launches, it doesn't have any sort of a gap filler in there for acquisitions or potential tuck-ins over the course of the year. That is the footprint of products that we own today and/or we have on deck the calendar year to launch. John T. Hendrickson - President & Chief Executive Officer: Correct. Thank you for clarifying, Judy.

I guess ... John T. Hendrickson - President & Chief Executive Officer: Thank you.

Okay, thanks.

Thank you. Next question please?

Your next question comes from the line of David Buck with Northland Capital.

Hi. This is Mike on for David (01:24:30). Thanks for taking my question. I know you guys talked about a little bit about balancing M&A with other uses of capital. So the recent changes in pricing pressure, does that change how you look at acquisitions across different segments? Thanks. John T. Hendrickson - President & Chief Executive Officer: Yeah. Thanks for the question. So again, I'll step back and say if you look at our business composition, we still remain 70% direct consumer phasing without a pharmacist interface. So if I look at acquisitions, using M&A and talk about bolt-on acquisitions versus completely transformational-type acquisitions, my belief is they will fit within the categories in that sort of proportion.

Thank you. Next question, please.

Okay. Your last and final question comes from Jon Andersen of William Blair. Jon R. Andersen - William Blair & Co. LLC: Good morning, everybody. And congratulations on the new and enhanced roles. Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Thank you, Jon. John T. Hendrickson - President & Chief Executive Officer: Thank you. Jon R. Andersen - William Blair & Co. LLC: I wanted to ask about the CHC business. And specifically, if you could comment a little bit more on overall market share trends for store brands in your target categories, and whether we're reaching kind of a plateau in the legacy business in terms of overall market share, or whether we should continue to consider kind of a historical trend rate of 50 to 100 basis points of share improvement over time? Thanks. John T. Hendrickson - President & Chief Executive Officer: Yeah. Thank you, Jon. I appreciate the question. As we step back – and the thing that you have in Consumer Healthcare is you do have ebbs and flows. We had -Johnson & Johnson was out in the market with certain products, and they came back. And so you certainly have ebbs and flows that are bigger shifts in the market. But when I step back big picture wise and say, what's expected, the dynamics in the industry in my mind still remain unchanged. As innovators launch the products, we're in a great position to capitalize on that. The macroeconomic trends of people getting older, needing more, healthcare costs going up despite our ability or desire to control them more, continue to drive people towards retail brands. And frankly when they try them, they recognize the quality there. And so that's allowed the share to grow. And my belief is that we'll continue to allow the share to drive upward. I'd hate to speculate right now without, again, going through our long rage plan theme, with exactly what percentages it will go, I foresee continued share growth, again, when you got product-by-product dynamics but continued share growth for our core U.S. or brand market.

Sorry, operator, can we take one more question, please?

Yes. Your final question comes from Jason Gerberry with Leerink Partners.

Good morning, guys. This is Derek on for Jason. Thanks for taking my question. So maybe first, just kind of on the updated guidance, what does that imply for a new product contribution in 2016? Just trying to get a better understanding across the segments, where the new products are definitely coming from. And second for John, in the PR, you commented consumer is kind of the core of the business. I mean, how do you believe you can grow that organically and strengthen that core? Thanks. John T. Hendrickson - President & Chief Executive Officer: Great, thank you. Let me start out on the new product side and the guidance there, and I'm just going to toss that to Judy because she has the exact... Judy L. Brown - Executive Vice President, Business Operations & Chief Financial Officer: Yeah. Official statement made in my prepared remarks is that we had previously said, greater than $400 million, and we have moved that to greater than $300 million. So it's mixed across all three major business units in terms of product timing. So it's a little from CHC, more from BCH and some adjustments to Rx. John T. Hendrickson - President & Chief Executive Officer: On the second part of your question, when you look at Consumer Healthcare and sort of the core, so as I kind of add up all the parts, there is some base growth form our business that continues to allow that Consumer Healthcare business to grow. Switches are certainly game-changing or category changing, depending on which kind of switch it is. And we continue to see switches as a big part of the growth of that over-the-counter market when you look out over the next few years. And as different categories, I talked about derm or…

Thank you, ladies and gentlemen. This concludes today's conference call. You may now disconnect.