Perrigo To Divest Its Rights To Royalty Stream From Tysabri To Royalty Pharma

(RTTNews) - Perrigo Company plc (PRGO) announced a definitive agreement to divest its rights to the royalty stream from the global net sales of the multiple sclerosis drug Tysabri (natalizumab) to RPI Finance Trust, an affiliate of Royalty Pharma. The transaction is valued at a total consideration of up to $2.85 billion, composed of $2.2 billion in cash at closing and up to $650 million in potential milestone payments based upon future global net sales of Tysabri in 2018 and 2020.

Tysabri is an FDA approved treatment for multiple sclerosis. Perrigo acquired the rights to the Tysabri royalty stream through the company's 2013 acquisition of Elan Corporation plc. Royalty Pharma 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's CEO John Hendrickson stated, "Today's announcement is the result of Perrigo's review of strategic alternatives for the Tysabri royalty stream announced in November 2016. While dilutive to adjusted EPS, the significant upfront cash component will allow us to de-lever our balance sheet, which supports our investment grade financial policy, and better positions Perrigo to pursue our strategic plan."

Perrigo also announced that Ron Winowiecki, Senior Vice President, Business Finance, has been appointed acting Chief Financial Officer, effective immediately, following the resignation of Judy Brown, Executive Vice President, Business Operations and Chief Financial Officer. The company said it is conducting a thorough search process to identify a permanent Chief Financial Officer, which includes Winowiecki as a key candidate. Perrigo announced that Svend Andersen has been appointed Executive Vice President and President, Consumer Healthcare International.