Perrigo Faces Lawsuit Over Infant Formula Business, Shares Plunge 25.2%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: Globenewswire
- Lawsuit Background: Perrigo is facing a lawsuit for failing to disclose significant underinvestment and operational deficiencies in its acquired infant formula business during the securities trading period from February 27, 2023, to November 4, 2025, resulting in investor losses.
- Financial Impact: On November 5, 2025, Perrigo released its Q3 financial results and lowered its full-year guidance due to soft OTC consumption and issues in the infant formula business, causing shares to plummet from $20.19 to $15.10, a decline of 25.2%.
- Capital Expenditure Issues: The lawsuit alleges that Perrigo needs to incur over $240 million in capital and operational expenditures to remediate deficiencies in the infant formula business, highlighting significant financial management failures.
- Strategic Review: Perrigo has initiated a strategic review of its infant formula business, reassessing its previously announced investment plans, which may impact future business direction and market confidence.
Analyst Views on PRGO
Wall Street analysts forecast PRGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRGO is 27.50 USD with a low forecast of 23.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 13.920
Low
23.00
Averages
27.50
High
32.00
Current: 13.920
Low
23.00
Averages
27.50
High
32.00
About PRGO
Perrigo Company plc is a provider of over the counter (OTC) health and wellness solutions that are designed to enhance individual well-being. Its segments include Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). The CSCA segment comprises of its consumer self-care business in the United States and Canada. It primarily provides its customers self-care products that are sold and marketed under the customer's own brands and/or exclusive brands. The CSCI segment comprises of its consumer self-care business outside of the United States and Canada, primarily in Europe and Australia. These products are developed, manufactured, marketed, and distributed by the Company. Its product categories include Upper Respiratory, Pain and Sleep-Aids, Skincare and Personal Hygiene, Digestive Health, and Nutrition. Its primary branded products are sold under brand names Compeed, Dr. Fresh, Firefly, Good Sense, Mederma, Nasonex, Solpadeine, Coldrex, and Physiomer, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
