Deutsche Bank analyst Gregg Gilbert downgraded Perrigo to Hold and lowered her price target for the shares to $78 from $93. The analyst thinks it will take the market some time to realize if the company's decision to separate the prescription business from the consumer business will benefit shareholders. Meanwhile, Perrigo needs to re-establish a "meet-or-beat track record" in the coming quarters, Gilbert tells investors in a research note.

Perrigo announced that pharmaceutical company Esteve Healthcare has signed a binding offer to acquire Perrigo's HRA Pharma Rare Diseases business for a total consideration of up to EUR 275M, consisting of an upfront cash payment of EUR 190M and up to EUR 85M in potential earnout payments based on the Rare Diseases business achieving certain sales milestones. Following the information and consultation process with HRA Pharma Works Council in France, Perrigo would be able to exercise the put option granted by Esteve and enter into a definitive agreement with Esteve for the sale of the Rare Diseases business. The proposed final transaction is expected to close during the third quarter of 2024, subject to the satisfaction of the HRA Works Council consultation and customary closing conditions, including receipt of regulatory approvals.