Valeant's Gain Is Perrigo's Loss

Perrigo Company plc Ordinary Shares PRGO shares are trading lower by $15 at $106.35 in Monday's session. There are two catalysts for the sharp decline in the issue.

First, before the open, the company slashed Q1 EPS and sales guidance, as well as its entire FY 2016 outlook.

Also, the company's CEO, Joseph Papa, has resigned to take the same postilion at Valeant VRX.

The Street gave fair warning that they were nervous about the Papa leaving, as the issue traded more than $7 lower on Friday (falling from $128.68 to $121.35), when reports first surfaced regarding Papa taking the helm at Valeant.

After a lower open, it managed a brief rally to $110.38, before falling back to $104.70 and attempting to mount another rally. The current low coincides with its February 2013 low ($104.89).