Perrigo (PRGO) risk factors, FY2024 10-K

Other

1. 01Litigation and Insurance Risks

Tax Related Risks

1. 02Capital and Liquidity Risks
2. 35The resolution of uncertain tax positions, including any ongoing disputes with U.S. and foreign tax authorities, could be unfavorable, which could have a material adverse effect on our business
3. 36Changes to tax laws and regulations or the interpretation thereof could have a material adverse effect on our results of operations and the ability to utilize cash in a tax efficient manner
4. 37Our effective tax rate or cash tax payment requirements may change in the future, which could adversely impact our future results of operations
5. 38Our indebtedness could adversely affect our ability to invest in our business and implement our strategic initiatives
6. 39We cannot guarantee that we will buy back our ordinary shares pursuant to our announced share repurchase plan or that our share repurchase plan will enhance long-term shareholder value
7. 40Any additional shares we may issue could dilute your ownership in the Company
8. 41We are incorporated in Ireland; Irish law differs from the laws in effect in the United States and may afford less protection to, or otherwise adversely affect, our shareholders
9. 42We may be limited in our ability to pay dividends in the future

Operational Risks

1. 03We face competition from other consumer packaged goods and pharmaceutical companies, which may threaten the demand for and pricing of our products
2. 04If we do not continue to develop, manufacture, and market innovative products, introduce new line extensions, and expand into adjacent categories that meet customer demands, our net sales may be negatively impacted and we may lose market share
3. 05We operate in highly regulated industries, and any inability to timely meet current or future regulatory requirements could have a material adverse effect on our business and operating results
4. 06Limitations on reimbursement, continuing healthcare reforms, and changes to reimbursement methods in the United States and other countries may have an adverse effect on our financial condition and operating results
5. 07Unfavorable publicity or consumer perception of the safety, quality, and efficacy of our products could have a material adverse effect on our business
6. 08Lack of availability, or significant increases in the cost, of raw materials used in manufacturing our products could have a material adverse effect on our profit margins and operating results
7. 09As the COVID-19 pandemic demonstrated, the global economy and the self-care markets in which we compete are susceptible to impacts from public health crises
8. 10Disruption of our supply chain, including as a result of the pandemics, global health crises, or wars or other civil unrest, including the war in Ukraine, or in the Middle East, could have a material adverse effect on our business, financial condition, results of operations and cash flows
9. 11A disruption at any of our main manufacturing facilities could have a material adverse effect on our business, financial position, and results of operations
10. 12Our business could be negatively affected by the performance of our collaboration partners and suppliers, and any such adverse impact could be material
11. 13Our business depends upon certain customers for a significant portion of our sales, therefore our business would be adversely affected by a disruption of our relationship with these customers or any material adverse change in these customers' businesses
12. 14Our businesses could be adversely affected by deteriorating economic conditions in the countries in which we operate, and our results may be volatile due to these or other circumstances beyond our control
13. 15A cybersecurity breach, disruption or misuse of our information systems, or our external business partners’ information systems could have a material adverse effect on our business
14. 16which, individually or collectively, could result in financial, legal, business or reputational harm to us and could have a material adverse effect on our business, financial condition and results of operations
15. 17Management transition creates uncertainties, and any difficulties we experience in managing such transitions may negatively impact our business

Strategic Risks

1. 18We may not realize the benefits of business acquisitions, divestitures, and other strategic transactions, which could have a material adverse effect on our operating results
2. 19Moreover, the financing of any acquisition can have a material impact on our liquidity, credit ratings and financial position. Alternatively, issuing equity to pay all or a portion of acquisition purchase price would dilute our existing shareholders
3. 20We have recorded significant goodwill and intangible assets on our balance sheet as a result of previous acquisitions, which could become impaired and lead to material charges in the future
4. 21There can be no assurance that our business strategy and related strategic initiatives, including restructurings, will be executed effectively or achieve their intended effects
5. 22The synergies and benefits expected from acquiring HRA Pharma and Gateway may not be realized in the amounts anticipated or at all and integrating HRA Pharma and Gateway's business may be more difficult, time consuming or costly than expected
6. 23Failure to effectively monitor and respond to ESG matters, including our ability to set and meet reasonable goals related to climate change and sustainability efforts, may negatively affect our business and operations
7. 24If we are unable to maintain effective internal control over financial reporting, investors could lose confidence in the accuracy and completeness of our financial reports and the market price of shares could be adversely affected
8. 25Our business, financial condition, and results of operations are subject to risks arising from the international scope of our operations
9. 26Additionally, we are subject to periodic reviews and audits by governmental authorities responsible for administering import and export regulations. To the extent that we are unable to successfully defend against an audit or review, we may be required to pay assessments, penalties, and increased duties
10. 27We operate in jurisdictions that could be affected by economic and geopolitical instability, which could have a material adverse effect on our business
11. 28The international scope of our business exposes us to risks associated with foreign exchange rates
12. 29We are or may become involved in lawsuits and may experience unfavorable outcomes of such proceedings
13. 30Increased scrutiny on pricing practices and competition, including antitrust enforcement activity by government agencies and class action litigation, may have an adverse impact on our business and operating results, which could be material
14. 31The manufacture, use and sale of new products that are the subject of conflicting patent rights have been the subject of substantial litigation in the self-care and pharmaceutical industries
15. 32If we fail to adequately protect our intellectual property, competitors may manufacture and market similar products
16. 33Our ability to achieve operating results in line with published guidance is inherently subject to numerous risks and other factors beyond our control. Publishing earnings guidance subjects us to risks, including increased stock volatility, that could lead to potential lawsuits by investors
17. 34Significant increases in the cost or decreases in the availability of the insurance we maintain could adversely impact our operating results and financial condition. Disputes with insurers on the scope of existing policies may limit the coverage available under such policies