Perrigo Initiates Strategic Review of Infant Formula Business
Perrigo Company plc (NYSE: PRGO), a leading provider of consumer health products, announced on November 5, 2025, that it is beginning a strategic review of its infant formula business. The company aims to explore a wide range of alternatives through this process.
Purpose and Alignment with Corporate Strategy
The review supports Perrigo's 'Three-S' strategy—Stabilize, Streamline, Strengthen—and underscores its focus on disciplined capital allocation. The company seeks to enhance returns on invested capital and total shareholder value.
Focus Areas of the Review
- Accelerating cash flows
- Reevaluating the previously announced $240 million investment in the infant formula business
- Optimizing portfolio impact and strategic focus
Infant Formula Business Overview
In 2025, Perrigo’s infant formula segment is projected to generate around $360 million in net sales, representing about 90% of the company's global Nutrition category but less than 10% of its total annual net sales.
The business has stabilized operationally, delivers quality-assured formula, and remains the sole large-scale U.S. store brand and contract manufacturer with a significant near-term innovation pipeline.
Perrigo stated: "We will continue to serve parents and caregivers with safe, affordable infant formula throughout the review process."
Summary: Perrigo is reviewing its infant formula business to boost cash flow, optimize investments, and maintain its leadership in safe, affordable infant nutrition.