Biotech Values

[DewDiligence]

PRGO -18% on 2016 guidance cut—shareholders lament rejection of MYL buyout:

http://www.wsj.com/articles/perrigo-shares-tumble-as-ceo-leaves-for-valeant-guidance-cut-again-1461594165

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 move by Mr. Papa comes just months after he successfully beat back a $26 billion hostile takeover bid from Mylan NV by convincing shareholders that Perrigo’s growth prospects were brighter as a stand-alone company.

Since then, the maker of store-brand cold and allergy medicines has posted disappointing quarterly results and chipped away at its outlook, failing to live up to the overtures it made to shareholders about its outlook and valuation while it fought against the deal [quite an understatement].

…Perrigo’s stock has fallen by nearly one-third since shareholders rejected Mylan’s offer in November, and shares have lost about half of their value over the past year.