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Monday, 05 June 2017 21:36

After 14 months as CEO, Hendrickson plans to retire from Perrigo

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John Hendrickson John Hendrickson COURTESY PHOTO

ALLEGAN — Perrigo Co. plc CEO John Hendrickson plans to retire soon after the company finds his successor.

Directors at Perrigo have formed a search committee for a new CEO to replace Hendrickson, whose planned departure comes just 14 months after he took over from Joe Papa.

Soon after successfully fending off a hostile takeover bid by Mylan N.V., Papa left abruptly last spring to lead Valeant Pharmaceuticals International Inc.

Since beating back Mylan’s bid, Perrigo has struggled financially and missed earnings expectations. Former CFO Judy Brown also left in February to join Amgen Inc.

Hendrickson had to confront all of those issues in his short tenure as CEO.

“My decision to retire this year has not been an easy one, but now is the right time for me to make this change personally and professionally,” the 54-year-old Hendrickson said in a statement issued late Monday afternoon after the market closed. “I am privileged to have led Perrigo, particularly as we’ve met the challenges we faced and stabilized the business in a time of transition. I look forward to continuing to work alongside our tremendous leadership team until we’ve successfully transitioned to my successor.”

Hendrickson plans to retire 60 days after Perrigo hires a successor and will assist in the transition. The company’s statement did not offer a reason as to why Hendrickson chose to retire now from Perrigo, which he joined in 1989. In his tenure with the company, he’s held a number of executive management positions.

Laurie Brlas, chair of Perrigo’s board of directors, credited Hendrickson with crafting a plan to improve the company’s operations and forecasting and a portfolio review that includes the divestiture of non-core assets.

Perrigo also struck a deal with activist shareholder Starboard Value LP, which has five directors on the board and pushed for the strategic review.

“The Board is grateful to John for his 25-plus years of service to the Company and we look forward to partnering with him to continue on the outstanding progress of the past year while we work to identify his successor. John has taken meaningful action across all areas of our business,” Brlas said in a statement. “The Board and I have no doubt about the strength of Perrigo’s business and that we will carry this momentum forward over the next few months of John’s leadership and beyond under a new executive. We will retain an executive search firm to support our thorough search for Perrigo’s next leader who can continue to build on our upward trajectory.”

Perrigo also delayed filing regulatory financial reports for 2016 until May as it worked out accounting issues. The company reported 2016 net sales of $5.28 billion, up 5 percent from 2015, with a net loss of $4 billion that stemmed from a goodwill and intangible asset impairment charges of $5.4 billion. Excluding the charges, Perrigo had operating income of $728 million for 2016.

In a report for the first quarter released last week, Perrigo reported $1.19 billion in sales, a 9-percent increase from a year earlier, with net income of $72 million, or 50 cents per diluted share. The company expects 2017 sales of $4.6 billion to $4.8 billion with earnings of $1.82 to $2.17 per share.

Read 1153 times Last modified on Tuesday, 06 June 2017 06:51
Mark Sanchez

Senior Writer

msanchez@mibiz.com

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