Pharma Names Under Pressure Amid Perrigo Warning

Shares of Perrigo Company plc PRGO 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 Inc VRX 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 plc AGN were trading lower by around 2 percent while shares of Teva Pharmaceuticals Industries Ltd TEVA lost around 1.50 percent. Shares of both Merck & Co., Inc. MRK and AbbVie Inc ABBV were lower by more than 1 percent each while Pfizer Inc. PFE saw its shares shed around 0.60 percent