Shares of Perrigo (PRGO - Get Report) , a manufacturer of private label over-the-counter pharmaceuticals, were higher by nearly 4.5% during afternoon trading on Wednesday after the firm reported stronger-than-expected first-quarter financial results.

Perrigo reported earnings of $1.05 a share on revenue of $1.19 billion.

Analysts were projecting earnings of 98 cents a share, on revenue of $1.18 billion.

The quarter's success, Canaccord Genuity analyst Dewey Steadman argued, means Perrigo has removed an overhang.

"Overall, 1Q/17 performance was not a surprise given last week's pre-announcement. We view today's filing as eliminating a major source of share-price overhang while freeing management bandwidth to tackle broader strategic planning and development for the company," Steadman noted.

"Long term, we maintain our view of Perrigo as a solid ex-generics business with good potential strategy; we maintain our BUY rating on PRGO shares," he added.

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