Perrigo initiates strategic review of infant formula business

DUBLIN - Perrigo Company plc (NYSE:PRGO) announced Wednesday it is conducting a strategic review of its infant formula business as part of the company's ongoing portfolio optimization efforts. The consumer health company, currently trading near its 52-week low of $20.18, has seen its shares decline nearly 19% year-to-date.

The review aligns with Perrigo's "Three-S" (Stabilize, Streamline, Strengthen) strategy and will assess various alternatives for the business, which is expected to generate approximately $360 million in net sales for 2025, representing less than 10% of the company's annual revenue of $4.3 billion.

Perrigo will evaluate options that could accelerate cash flows while reconsidering its previously announced $240 million investment in the infant formula segment. The company emphasized it will continue supplying infant formula products throughout the review process.

"This proactive review is about discipline and ensuring the Company's portfolio is best positioned for sustainable growth and free cash flow generation," said President and CEO Patrick Lockwood-Taylor in the press release statement. He noted that while operations have stabilized, "the external environment has quickly changed, making a fit with our consumer health OTC businesses less strategic."

The company stated that no decisions have been made and no timetable has been established for completing the review. Perrigo did not commit to providing further updates unless required.

As the only large-scale U.S. store brand and contract manufacturer of infant formula with a near-term innovation pipeline, Perrigo's strategic priorities include reducing leverage, maintaining its dividend policy, and focusing on its over-the-counter product portfolio.

The announcement comes as Perrigo continues to position itself as a pure-play self-care company primarily serving North American and European markets.

In other recent news, Perrigo Company plc has declared a quarterly dividend of $0.29 per share, which is set to be paid on December 16, 2025, to shareholders on record as of November 28, 2025. This announcement aligns with Perrigo's ongoing commitment to its shareholder return policy. Despite facing challenging market conditions, Perrigo reported second-quarter results that slightly missed analyst expectations. However, the company reaffirmed its full-year guidance, maintaining a positive outlook for the remainder of the year. These developments reflect Perrigo's strategic efforts to navigate current market challenges while continuing to provide value to its shareholders.

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