Pharma Names Under Pressure Amid Perrigo Warning

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Shares of
Perrigo Company plcPRGO
plunged more than 15 percent on Monday and hit a new 52-week low after the company appointed John T. Hendrickson as CEO and
provided
preliminary first quarter results in addition to full year 2016 guidance. Henrdickson was named as CEO following the retirement of Joseph Papa who accepted the CEO title at
Valeant Pharmaceuticals Intl IncVRX
Perrigo's first quarter preliminary guidance consisted of an earnings per share range of $1.71 to $1.77 on sales of $1.33 billion to $1.35 billion. Wall Street analysts were expecting the company to earn $1.89 per share on revenue of $1.4 billion. Looking forward to the full fiscal year, Perrigo cut its earnings per share guidance range from $9.50 to $10.10 per share to a new range of $8.20 to $8.60 per share. Perrigo's disappointing outlook resulted in a sell-off in other pharmaceutical names. Shares of
Allergan plcAGN
were trading lower by around 2 percent while shares of
Teva Pharmaceuticals Industries LtdTEVA
lost around 1.50 percent. Shares of both
Merck & Co., Inc.
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MRK
and
AbbVie IncABBV
were lower by more than 1 percent each while
Pfizer Inc.PFE
saw its shares shed around 0.60 percent
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Posted In: NewsGuidanceJohn HendricksonJoseph PapaPerrigopharmaceutical stockspharmaceuticals
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