low-to-moderate - OTC healthcare products exhibit defensive characteristics as consumers continue purchasing pain relievers, cough/cold remedies, and basic skincare regardless of economic conditions. However, discretionary categories like premium skincare and vitamins show modest cyclicality. Retailer inventory management becomes more conservative during economic uncertainty, impacting order patterns and working capital. Generic Rx volumes are largely non-cyclical but face reimbursement pressure.

Rising interest rates increase borrowing costs on Perrigo's debt load (0.86x D/E ratio), pressuring free cash flow available for debt reduction or reinvestment. Higher rates also compress valuation multiples for low-growth, cash-generative businesses like Perrigo. However, the company's floating-rate exposure is limited, and the primary impact is through refinancing risk and opportunity cost of capital allocation decisions.

value - The stock trades at distressed multiples (0.5x P/S, 0.5x P/B, 8.8x EV/EBITDA) reflecting operational challenges and turnaround uncertainty, attracting deep-value investors betting on margin recovery and free cash flow normalization. The 12.2% FCF yield appeals to investors focused on cash generation despite negative net income. Recent 41% one-year decline has created potential entry point for contrarian investors expecting stabilization in Consumer Self-Care Americas and European market recovery.