Drugmaker Perrigo Co. on Wednesday said it missed earnings expectations for the latest quarter and cut its guidance for the year as it continues to battle pricing pressure and competition in the market.

Perrigo stock, which has lost more than half its value over the past 12 months, dropped 12% premarket to $83.39.

"Our financial results were below our expectations primarily due to competition and price erosion in the Rx business," Chief Executive John Hendrickson said. Mr. Hendrickson was named to his position after Joseph Papa resigned to take on the CEO role in early May at troubled Valeant Pharmaceuticals International Inc.

Perrigo's performance has waned and its stock has plunged after Mr. Papa rallied shareholders to reject a takeover offer in November from Mylan NV that valued Perrigo at $26 billion, insisting the company's growth prospects would be brighter as a stand-alone firm. At Perrigo's premarket level Wednesday morning, the company's market value would be about $12 billion.

The over-the-counter specialty-pharmaceutical company says it now expects 2016 adjusted earnings of $6.85 to $7.15 a share, down from the forecast three months ago of $8.20 to $8.60 a share.

Perrigo also said it is expecting lower performance from its branded-consumer-healthcare segment, where second-quarter sales fell 2% to $394 million.

Sales in the consumer healthcare segment fell 8% to $686 million during the quarter, dragged down by lower existing products sales, particularly in the cough/cold category as the past allergy season was relatively weak. The prescription pharmaceuticals segment saw its sales rise 5% to $293 million, led by new product sales and product acquisitions.

For the quarter ended July 2, Perrigo posted a profit of $194 million, or $1.35 a share, more than double last year's profit of $56 million, or 38 cents a share. Sales fell 3.3% to $1.48 billion.

Adjusted earnings came in at $1.93 a share, a decline from $2.18 a share a year ago.

Analysts polled by Thomson Reuters had expected $1.98 in per-share earnings on $1.43 billion in revenue.

Write to Brittney Laryea at brittney.laryea@wsj.com

(END) Dow Jones Newswires

August 10, 2016 08:45 ET (12:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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