Perrigo Considering Strategic Alternatives for MS Drug
November 10 2016 - 9:20AM
Dow Jones News
Perrigo Co. acquiesced to an activist investor demand and said
it was considering strategic alternatives for one of its drugs, and
it swung to a quarterly loss, hurt by charges.
Perrigo said it was exploring strategic alternatives for the
lucrative royalty stream rights for its multiple sclerosis drug
Tysabri.
The Wall Street Journal reported in September that Starboard
Value LP built a 4.6% stake in Perrigo and then urged the drug
company to refocus on its core business including by selling those
Tysabri rights. Perrigo also said Thursday it would appoint two new
independent board members and that it was on track to complete a
strategic portfolio review of its segments, market positions and
growth prospects by the first quarter of 2017.
Shares rose 4% to $86.81 in premarket trading.
Perrigo also said it had taken an $804 million goodwill
impairment charge and a $866 million charge for brand impairment,
both related to its 2015 $4.5 billion purchase of Omega Pharma NV
Perrigo said it would file an arbitral claim against the sellers of
Omega before the end of the year.
Perrigo's products include infant formulas, store-brand versions
of cold and allergy medicines and generic prescription drugs.
In all for the latest quarter, Perrigo posted a net loss of
$1.26 billion, or $8.76 a share, compared with a net profit of
$112.6 million, or 77 cents a share, last year.
On an adjusted basis, which excludes the write-downs, profit per
share was $1.65, down from $1.76 last year. Revenue rose 0.8% to
$1.35 billion.
Analysts polled by Thomson Reuters had expected adjusted
earnings per share of $1.58 on $1.28 billion in revenue.
Last year, Perrigo shareholders voted to remain independent,
rejecting a $26 billion offer from Mylan NV.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 10, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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