SunTrust analyst Gregg Gilbert raised his price target on Perrigo to $55 after meeting with its CEO Murray Kessler and CFO Ray Silcock. The analyst notes that he is encouraged by the management's confidence in delivering organic growth, managing liabilities, and pursuing "bolt-on" deals, but also keeps his Hold rating ahead of gaining further clarity on organic growth trends, the separation options of its generic business, and the company's tax liability overhang. Gilbert also adjusts the implied valuation of his pricing model to 11-times his expected FY20 EBITDA from the prior 10-times multiple.

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.