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Perrigo 'Unlocks Value' But Weak 2017 Outlook Impedes Revelry

 
• By Sukaina Virji

Perrigo bows to pressure from activist investor to 'unlock value' by selling Tysabri royalty stream and laying off 750 staff, but still provides a weak outlook for 2017, prompting analysts to question the wisdom of the strategy.

Perrigo Co. PLC is selling its royalty stream in multiple sclerosis drug Tysabri (natalizumab) to Royalty Pharma for up to $2.85bn, following pressure from hedge fund Starboard. The deal comprises $2.2bn in cash at closing and up to $650m in potential milestone payments.

Starboard has highlighted the fact that Perrigo's share value has dropped since the firm convinced shareholders to reject a takeover offer from Mylan NV in 2015

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