Perrigo Completes Divestiture of Tysabri® Royalty Stream for up to $2.85B

Perrigo Company announced 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.