The company says it will lay off 6% of it;s work force, sell off it’s vitamin unit and buy back $2 billion dollars in stock.
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In September, Mylan offered Perrigo shareholders $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share, giving Perrigo shareholders a 40 percent ownership in the combined company.
Mylan has been repeatedly spurned by Perrigo since April, forcing the generic drugmaker to take its buyout offer directly to Perrigo’s shareholders.
Perrigo, the over-the-counter drug specialist, is bringing more of its business to Dublin as it looks to fend off the unwanted attention of generic drug giant Mylan. Perrigo also narrowed full year 2015 adjusted EPS guidance range to $7.65 – 7.85, excluding the benefits from Share Repurchase Plan.
Promotion of John Hendrickson to PresidentPerrigo also announced that John Hendrickson, formerly Executive Vice President, Global Operations and Supply Chain, will be promoted to the position of President, effective immediately, reporting to Chairman and CEO, Joe Papa.
On Tuesday, Snyder posted a statement to his social media channels expressing worries over what will happen if Perrigo investors tender their shares and Mylan gains control of the company.
Perrigo Company (NYSE:PRGO) witnessed a decline in the market cap on Thursday as its shares dropped 4.87% or 7.56 points. Leerink Swann upped their target price on shares of Perrigo Company PLC from $171.00 to $177.00 and gave the stock a “market perform” rating in a research note on Thursday, August 6th. Mylan has counter-sued Perrigo over its “serious misstatements” regarding the offer.
Perrigo said it would reduce its head count by about 800 employees, or 6% of its workforce.
Perrigo Company plc (NYSE:PRGO) stays very bullish on its future, despite reporting a revenue miss in its third-quarter earnings release on Thursday.
“The actions we are announcing today to drive substantial profit growth make the gross inadequacy of Mylan’s offer clearer than ever”, Papa said in the statement.
These actions are expected to deliver $35 million in annualized operating benefits. The company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.03.
Perrigo reported a 41% year-over-year (YoY) increase in 3Q sales to $1.34 billion, but still fell short of $1.42 billion consensus by analysts.
In addition to today’s announced restructuring plans, Perrigo indicated it was initiating a $2 billion share repurchase plan.
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Perrigo Company plc is a global healthcare provider that develops, manufactures and distributes over the counter (NASDAQ:PRGO) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, animal wellness, vitamin supplements, active pharmaceutical ingredients (API), and medical diagnostic goods, and Multiple Sclerosis drug Tysabri.
