Perrigo Trims Workforce, Ships Tysabri License, Stays European Course
This article was originally published in The Pink Sheet
The firm is reducing its non-production workforce by 750, a decision made after three representatives of disgruntled investor Starboard Value joined its board. Perrigo charts a course of recovery for its struggling international consumer health business, but some analysts are convinced it took a wrong turn with its 2015 investment in European OTC drug and nutritional product businesses and brands.
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Perrigo is investing to grow its reinvigorated International consumer health business by acquiring three OTC skin-care brands from Sanofi.
Perrigo bows to pressure from activist investor to 'unlock value' by selling Tysabri royalty stream and laying off 750 staff, but still provides a weak outlook for 2017, prompting analysts to question the wisdom of the strategy.
OTC private label giant agrees with Starboard, which owns around 6.7% of Perrigo's shares, to immediately add to Perrigo's board Starboard CEO Jeffrey Smith and two other members recommended by the hedge fund: former Pfizer CEO Jeffrey Kindler and Nestle USA executive Bradley Alford.