Former CEO Papa's exit for Valeant had analysts asking whether Perrigo erred by allowing Papa, after a year of the firm's share price plummeting, to leave for another pharma that could compete with the OTC private label giant. Perrigo did not blink, say Hendrickson and board Chairwoman Laurie Brias.

"There are rumors out there that we've got rid of his non-compete, that wasn't true. We did not," Hendrickson said.

"It was amended. It was not waived. He did not get out of it," Brias said.

Hendrickson said the board "fine-tuned" the two-year non-compete clause so Papa could move while assuring the firm that Valeant would not compete with its products. Papa "was basically paid up until his last day of employment and nothing going forward."

"We've made it absolutely clear that during in that 24 months, Joe remains prohibited from really serving as a significant competitor to Perrigo," Brias said, adding that Papa did not receive unvested shares he eventually would have earned.

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