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Perrigo shares rise on investor disclosure, Taro Pharma falls on probe

Perrigo Company shares advanced more than 7% on Monday after investor Starboard Value disclosed taking a 4.6% stake in the drug maker, according to the Wall Street Journal. But Taro Pharma has a probe to contend with

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Perrigo and Taro go in opposite directions

Perrigo Company (NYSE:PRGO) shares advanced more than 7% on Monday after investor Starboard Value disclosed taking a 4.6% stake in the drug maker, according to the Wall Street Journal.

The paper said the activist investment firm sent Perrigo a letter over the weekend saying it had failed to achieve performance targets and that it had been distracted fending off a takeover bid from Mylan (NASDAQ:MYL) in 2015.

Starboard said Perrigo should consider offloading its prescription drug business Rx Pharmaceuticals, which analysts believe would then open up strategic options for its consumer drug operation.

Proactiveinvestors reported Perrigo as a possible takeout target for Reckitt Benckiser (LON:RB. in July. Read more.

Perrigo shares rise 7.3% to $95.22 on Monday.

Meanwhile, Taro Pharmaceuticals (NYSE:TARO) shares dropped by 4% to $11.41 after Taro was subpoenaed by the US Justice Department, along with two of its senior officers, in connection with a federal investigation into generic drug pricing.

Quick facts: Perrigo Company

Price: 55.12 USD

NYSE:PRGO
Market: NYSE
Market Cap: $7.51 billion
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