What Perrigo Company plc told the SEC could break it.

New tariffs and trade policies materially increased Perrigo's cost of goods through fiscal 2025 for products and materials sourced from other countries, particularly China, with a significant impact on results of operations.

“Through fiscal year 2025, these new tariffs and trade policies have had a significant impact on our results of operations and the impact of these tariffs has materially increased the cost of goods for our products and materials sourced from other countries, particularly China.”

The U.S. Department of Commerce initiated a Section 232 investigation into pharmaceutical and pharmaceutical-ingredient imports; it may lead to tariffs on pharma imports consistent with the administration's reshoring objective, threatening Perrigo's foreign-sourced drug supply.

“Department of Commerce initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, to determine the effects of importing pharmaceuticals and pharmaceutical ingredients on national security.”

Several of Perrigo's key API suppliers are located in Israel — a critical node in the global API market — from which it sources raw materials and finished goods for certain self-care products including omeprazole; Middle East conflict creates potential supply/logistics disruption (alternate suppliers engaged as a precaution).

“Israel is a global technology research and development center that plays a critical role in the global Active Pharmaceutical Ingredients ("API") market, as a number of our key suppliers are located within Israel.”

Certain raw materials and packaging components, due to technical specifications and delivery systems, are available from only one or a few suppliers and require extensive compatibility testing before alternates can be used.

“However, supplies of certain raw materials and packaging components, due to their technical specifications and product delivery systems, are more limited as they may be available from one, or only a few suppliers, and may require extensive compatibility testing before we can use them.”