Jefferies analyst David Steinberg believes media reports indicating that Perrigo's (PRGO) long-time CEO Joe Papa will be appointed the new chief executive of Valeant "qualifies as a shocker." The analyst sees many reasons why Valeant's board would like to hire Papa, including his retail expertise and negotiating ability. Steinberg is concerned, however, over whether Papa is motivated enough for the "immense" challenges facing Valeant and fells his qualifications as a turnaround expert are not clear. He also finds it "out of character" for Papa to leave Perrigo without "righting the ship" as promised. Should the executive leave, he believes Perrigo would have "far more questions than answers." Shares of Valeant are up 6%, or $2.06, to $35.40 in pre-market trading. Perrigo is down $2.68 to $126.00.

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.