By Anne Steele

Perrigo Co. shares tumbled Monday as the company slashed its guidance for the year while announcing the departure of its Chief Executive Joseph Papa, who is moving to lead Valeant Pharmaceuticals International Inc.

The company now expects adjusted earnings to be between $8.20 and $8.60 a share, down sharply from its previous guidance for $9.50 to $9.80 a share.

Perrigo cited a reduction in pricing expectations in its prescription segment "due to industry and competitive pressures in the sector." The company also pointed to weaker-than-expected performance within the branded consumer health-care segment for the next three quarters and lower expectations for new product launches.

Mr. Papa's departure comes just months after he successfully beat back a $26 billion hostile takeover bid from Mylan NV, spearheading a campaign that ultimately persuaded shareholders to reject Mylan's bid.

Since then, though, Perrigo has reported disappointing quarterly results and slashed its outlook.

Its stock is down by about one-fourth since shareholders rejected the offer, and shares have fallen 45% over the past year. To be sure, in the time since Mr. Papa became CEO in 2006, the company's value has risen sharply.

Despite Perrigo's recent stumbles, Mr. Papa is well-known among investors, more so since the highly public Mylan campaign, in which he met extensively with shareholders to lobby for their support.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

April 25, 2016 10:37 ET (14:37 GMT)

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