Perrigo Misses Expectations and Cuts Guidance
August 10 2016 - 9:00AM
Dow Jones News
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.
Mylan NV (NASDAQ:MYL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Mylan NV (NASDAQ:MYL)
Historical Stock Chart
From Sep 2023 to Sep 2024