Shares of Perrigo Company plc (NYSE:PRGO) declined 0.9% in after-hours trading Monday after the company announced the immediate resignation of President and Chief Executive Officer Patrick Lockwood-Taylor.
The Board of Directors said in a press release that it determined certain personal conduct by Lockwood-Taylor was not consistent with the company’s Code of Conduct and core values. The resignation was effective immediately. The Board noted the conduct did not involve the company’s business, strategy, operations, financial reporting, or results of operations.
In the wake of the departure, the Board named Albert A. Manzone, an existing director, as Interim President and CEO and launched a search for a permanent successor. Manzone has been a member of Perrigo’s Board since 2022 and, according to the statement, brings more than 30 years of global leadership experience spanning consumer goods, consumer health, luxury, and hospitality.
Orlando D. Ashford, Chair of Perrigo’s Board of Directors, commented on the move and the board’s confidence in the interim leader. "The Company has made significant progress in advancing our strategy in recent years, stabilizing and streamlining the business and implementing our new commercial operating model and the Board remains confident in Perrigo’s outlook," Ashford said.
The announcement also recounted Manzone’s prior executive roles. He previously served as Deputy Chief Executive Officer of Monte-Carlo Société des Bains de Mer and as Chief Executive Officer of Whole Earth Brands. His career history includes senior leadership positions at Novartis Consumer Health, W.M. Wrigley Jr. Company, PepsiCo, and McKinsey & Company.
Alongside the leadership change, Perrigo reaffirmed its full-year 2026 guidance. The company said it still expects All In net sales growth of (5.5)% to (1.5)%, All In adjusted EPS of $2.00 to $2.30, Core net sales growth of (3.0)% to +1.0%, and Core adjusted EPS of $2.25 to $2.55.
Summary
Patrick Lockwood-Taylor resigned as Perrigo’s president and CEO effective immediately after the Board found certain personal conduct at odds with the company’s Code of Conduct and core values. Albert A. Manzone, a board member since 2022, was named interim president and CEO as the Board searches for a permanent replacement. Perrigo reiterated its full-year 2026 financial outlook. The company said the conduct did not touch its business operations or reporting. Shares fell 0.9% in after-hours trading on Monday.
Key points
- Perrigo’s CEO Patrick Lockwood-Taylor resigned effective immediately following board findings that certain personal conduct violated the company’s Code of Conduct and core values.
- Albert A. Manzone was appointed Interim President and CEO; the Board has started a search for a permanent successor. Manzone has been a board member since 2022 and has more than 30 years of global leadership experience across consumer goods and consumer health sectors.
- The company reaffirmed its full-year 2026 outlook, including All In and Core net sales and adjusted EPS ranges, and said the conduct did not involve business operations or financial reporting.
Risks and uncertainties
- Leadership transition - The appointment of an interim CEO and the process to find a permanent successor create short-term uncertainty for company leadership and investor sentiment, particularly in the consumer health and consumer goods sectors.
- Market reaction - The immediate stock decline in after-hours trading indicates investor sensitivity; further market moves could occur as the Board conducts its CEO search.
- Limited information on conduct - The Board indicated the conduct was personal and unrelated to company operations, but details were not disclosed, leaving unanswered questions for stakeholders.