Perrigo raises earnings guidance for 2016

The company now expects full-year earnings of $9.50 to $10.10 per diluted share, up from the guidance issued in October 2015 of $9.30 per diluted share.

Perrigo Co. plc today raised earnings guidance for 2016.

The company now expects full-year earnings of $9.50 to $10.10 per diluted share, up from the guidance issued in October 2015 of $9.30 per diluted share.

In issuing the higher guidance, Perrigo cited the $500 million repurchase of 3.3 million shares that was completed in the fourth quarter and the pending $1.5 billion share repurchase over the next 24 to 36 months. The company also cited the acquisition of the Entocort capsule and the pending acquisition of the generic version of Retin-A, along with changes since the fall in unfavorable foreign currency exchanges.

Chairman and CEO Joe Papa noted in the announcement that Perrigo also has $1.2 billion in new products that it plans to launch in the next three years that will further drive sales and earnings growth.

“We enter 2016 excited about the prospects for our durable business model and plan for growth,” Papa said. “We have the deepest Rx pipeline in our history and are excited about the quality of our M&A pipeline. For these reasons, we remain confident in our ability to deliver on our 2016 growth targets.”