Perrigo (PRGO) Tops Q3 EPS by 7c; Will Explore Strategic Alternatives for Tysabri
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Perrigo (NYSE: PRGO) reported Q3 EPS of $1.65, $0.07 better than the analyst estimate of $1.58. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.28 billion.
Perrigo also announced that as part of its ongoing business portfolio review, the Company will review strategic alternatives for the rights to the royalty stream from sales of the multiple sclerosis drug Tysabri® (natalizumab).
Perrigo's CEO John T. Hendrickson stated, "We continue to make progress on and take action against our stated strategic and operational plans first outlined in April 2016. Tysabri® dramatically improves the quality of life of patients with multiple sclerosis and its royalty stream provides a strong and predictable cash flow. However, after careful consideration, we believe now is the right time to review strategic alternatives for Tysabri® in order to monetize the value of this attractive asset. Perrigo remains committed to its investment grade rating regardless of the outcome of this review."
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.
Hendrickson continued, "The Perrigo Board of Directors and management are committed to delivering value for our shareholders, and today's announcement underscores our stated objective to optimize our portfolio. We are committed to leaving no stone unturned as we continue our strategic portfolio review. We are taking meaningful steps forward and I am confident that the Board and management will act to deliver the most value for shareholders."
Perrigo has engaged Morgan Stanley as its financial advisor to lead the review of strategic alternatives process for Tysabri®. There can be no assurances that this strategic review will result in a transaction.
For earnings history and earnings-related data on Perrigo (PRGO) click here.
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