• Perrigo Company plc recently filed a US$94.19 million shelf registration for 8,269,649 ordinary shares related to its employee stock ownership plan and affirmed a quarterly dividend of US$0.29 per share payable on June 16, 2026.
• At the same time, Perrigo is contending with legal scrutiny and operational issues in its infant formula business, including a securities lawsuit, investigations into potential fiduciary breaches, and remediation costs that have weighed on analyst expectations for near‑term earnings.
• Against this backdrop, we will explore how the infant formula investigation and related remediation costs may reshape Perrigo's investment narrative.

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Perrigo Investment Narrative Recap

To own Perrigo today, you have to believe its core store brand self‑care and OTC franchise can offset ongoing noise around infant formula and legal issues. The infant formula investigations and remediation costs are the key near term swing factor for earnings, while the biggest risk is that quality or supply chain problems in that segment persist and keep margins under pressure. The recent ESOP related shelf registration and dividend affirmation do not appear to change that risk reward balance in a material way.

The most relevant recent announcement here is Perrigo’s sale of its Dermacosmetics business to Karo Healthcare for up to €332.6 million, with proceeds earmarked mainly for debt reduction. That move fits with the idea that Perrigo is simplifying its portfolio to focus on core self care and nutrition, even as infant formula headwinds and investigations raise questions about how resilient those core earnings will prove.

Yet behind the reassuring dividend and balance sheet moves, the infant formula legal and remediation overhang is something investors should be aware of if...

Perrigo's narrative projects $4.2 billion revenue and $83.0 million earnings by 2029. This assumes fairly flat yearly revenue growth and an earnings increase of about $1.5 billion from -$1.4 billion today.

Uncover how Perrigo's forecasts yield a $17.00 fair value, a 46% upside to its current price.

Exploring Other Perspectives

Before this news, the most cautious analysts were already assuming flat revenue near US$4.2 billion and only US$96.9 million of earnings, so you should recognize how sharply opinions differ and consider how fresh legal and infant formula pressures could shift those expectations.

Explore 3 other fair value estimates on Perrigo - why the stock might be worth just $17.00!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Perrigo research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perrigo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perrigo's overall financial health at a glance.

No Opportunity In Perrigo?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.