Perrigo Completes Divestiture Of Tysabri Royalty Stream For Up To $2.85 Billion

Perrigo Company plc, a leading global provider of Quality Affordable Healthcare Products announced that it has completed the divestiture of its rights to the royalty stream from global net sales of the multiple sclerosis drug Tysabri (natalizumab) to RPI Finance Trust, an affiliate of Royalty Pharma (“RPI”). The transaction comprises a total consideration of $2.2 billion in cash and up to $650 million in royalties earned if global net sales of Tysabri meet specific thresholds in 2018 and 2020.

Perrigo’s CEO John T. Hendrickson stated, “Today’s announcement marks the successful outcome of our strategic alternatives process for the Tysabri royalty stream. This divestiture enables the Company to create additional flexibility for growth and maintain its investment grade commitment, while focusing on operational execution in our consumer-facing and Rx businesses. Completing this sale is a positive action step in our ongoing portfolio review. The Perrigo Board of Directors and I will continue to make decisions to create value and deliver on our mission of providing Quality, Affordable Healthcare Products to consumers around the globe.”

Under the terms of the agreement, RPI will acquire all of Perrigo’s rights to receive Tysabri royalty payments from and after January 1, 2017, which Perrigo has under an agreement with Biogen, Inc.

Perrigo will update its 2017 guidance after the Company files its 2016 Form 10-K with the United States Securities and Exchange Commission.