Debt is relative to the size of the company, the annual cash flow, and the company's ability to service the debt. No problem here. Want to complain about high debt numbers? Just look at VZ, T, and GE........over $100 billion each of debt.
And MYL should have taken the TEVA buyout 100% higher. what a bunch of #$%$ management teams.
Why to Buy the Stock:
BREAKING NEWS: Joseph Papa has left!
Perrigo remains fundamentally sound
Ripe for a takeover to unlock even more value
In recent news, Perrigo’s (PRGO) current CEO Joseph Papa has announced he has left for rival company Valeant Pharmaceuticals (VRX). This news dropped the pre-prgo snippetmarket trading by 12.85% and as much as 19% at one point during the day’s session. However, the company is remains great shape fundamentally. We believe the massive drop in value today (a whopping 20% dip!) was caused by investors completely overreacting to news. Therefore, we believe this is presenting investors a great opportunity with this entry point before the stock begins to rebound.
New president would be smart to cash in this royalty stream for as much as 4 billion and buy back 25% of the stock with proceeds here
Royalty stream of Tysabri could be sold off for billions and used to pay down debt or buy back stock. In two months Mylan will be licking its chops to make another run at Perrigo now that Papa is gone.
With Papa leaving and the share price cut in half PRGO has just become a target. That is probably the reason Papa was trying to get ENDP earlier in the year. Previously PFE tried buying them and we all know about MYL pursuit as well. I'm pretty sure there are other players out there looking to pick them up as well. See them getting bought out sooner or later. PFE can even buy them run them as a separate business and later spin off PFE generics into PRGO to take advantage of a lower tax rate when PFE breaks up.
Sentiment: Strong Buy