Analyst Note| Soo Romanoff |
No-moat Perrigo reported another quarter with the usual (significant) puts and takes complicated by the announced divestiture of its prescription business further muddied by the pandemic. Management has been active in the M&A market to better configure and manage its offerings across segments. The announced sale of its prescription business will provide the company with approximately $1.55 billion in gross proceeds that will likely aid in funding incremental acquisitions to expand its consumer self-care focus. We do not foresee a significant change in our fair value estimate of $40 per share.