Shares of Perrigo plummeted 18 percent Monday after Joseph Papa resigned as chairman and CEO and the company issued very weak guidance.
The company slashed its first-quarter estimates, as well as its full-year outlook, citing drug pricing expectations.
"The majority of this change in guidance provided on February 18 is the result of a reduction in pricing expectations in our Rx segment due to industry and competitive pressures in the sector," Perrigo said in a statement.
Perrigo's expected earnings per share (EPS) for the first quarter was $1.89, and $9.52 for 2016, according to Thomson Reuters. The drug firm now expects first-quarter EPS of between $1.71 and $1.77, while it sees full-year profits of between $8.20 and $8.60.