Are Perrigo's (PRGO) Recent Legal Challenges Raising New Questions About Nutrition Strategy?

• In November 2025, a series of class action lawsuits were filed against Perrigo Company, alleging the firm misled investors about the true condition of its infant formula business acquired from Nestlé and understated required investments and operational deficiencies.
• This legal development raises questions about previous disclosures by Perrigo and suggests new uncertainties for investors related to future financial performance and strategy for its nutrition segment.
• We’ll assess how the recently uncovered operational challenges within the infant formula division could influence Perrigo’s investment outlook going forward.

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Perrigo Investment Narrative Recap

To be a shareholder in Perrigo, you need to believe in its long-term ability to capitalize on growing demand for affordable self-care and store-brand OTC products, amid consumer cost-consciousness and health trends. However, the recent class action lawsuit raises new questions about the firm's disclosures and its infant formula business, making the outcome of Perrigo’s ongoing strategic review the most important short-term catalyst, while operational and reputational risks around its formula division now appear to be the biggest risk.

One relevant recent announcement is the company's November 2025 decision to initiate a strategic review of its infant formula business. This move suggests Perrigo is actively considering the future of the segment at the center of both operational challenges and the current legal dispute, which could impact future portfolio focus and capital allocation.

By contrast, investors should also be aware of possible financial and reputational impacts if operational issues in the infant formula unit prove deeper than initially revealed ...

Read the full narrative on Perrigo (it's free!)

Perrigo's outlook suggests revenues reaching $4.6 billion and earnings of $183.6 million by 2028. This is based on a forecasted annual revenue growth rate of 1.7% and an increase in earnings of $243.1 million from the current level of -$59.5 million.

Uncover how Perrigo's forecasts yield a $21.50 fair value, a 61% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Perrigo range widely from US$21.50 to US$56.99 per share. With recent legal risk over formula unit disclosures, your own perspective on transparency and remediation is key to understanding future prospects.

Explore 4 other fair value estimates on Perrigo - why the stock might be worth just $21.50!

Build Your Own Perrigo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perrigo research is our analysis highlighting 3 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.

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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.

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