Perrigo shares dip premarket on news to voluntarily recall albuterol sulfate inhalation aerosols due to clogging concerns

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Perrigo Company plc shares slid 3% in premarket trade Thursday, after the company said it’s voluntarily recalling albuterol sulfate inhalation aerosols over concerns that some may not dispense properly due to clogging. The Dublin-based maker of over-the-counter and generic health products already halted production and distribution of the aerosols. “Corrective action plans are underway and a definitive timeline for product reintroduction has not been determined at this time,” the company said in a statement. Perrigo is expecting to book a charge of $18 million to $22 million in the third quarter relating to the recall, and has not booked any revenue from the product since August. It reiterated its guidance for fiscal 2020 adjusted per-share earnings to range from $3.95 to $4.15, citing strong demand in the consumer self-care Americas business and faster-than-expected recovery in consumer self-care international and base prescription businesses that were hurt by the pandemic. Shares have fallen 3.5% in the year to date, while the S&P 500 has gained 4.8%.
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