|
 Perrigo also said it continued to expect full-year adjusted earnings
per diluted share to be $6.85 to $7.15. Analysts on average were
expecting an adjusted profit of $7.02, according to Thomson Reuters
I/B/E/S.
The company, which had a market capitalization of $11.97 billion as
of Wednesday's close, however, said it expected to report a net loss
of $9.04 to $9.34 per diluted share for the calendar year 2016.
Perrigo has been targeted by activist investor Starboard Value LP,
saying the Dublin-based drugmaker must make immediate improvements
to turn around its sagging stock price.
The royalty divestment is one of the actions that Starboard called
for earlier in September when it disclosed a 4.6 percent stake in
the company and complained about its sagging stock price.
Dublin-based Perrigo has hired Morgan Stanley as financial adviser
to lead the review process for Tysabri, the company said in a
statement.
Perrigo had been exploring sale of Tysabri royalties before
Starboard's proposals, Reuters reported in September citing people
familiar with the matter. Royalty Pharma, a privately held company
that specializes in acquiring drug royalties, is one of the
potential buyers, the people had added.
The company reported a net loss of $1.26 billion, or $8.76 per
share, in the third quarter ended Oct. 1, compared with a profit of
$113 million, or 77 cents per share, a year earlier.
The quarterly net loss includes a goodwill impairment charge of $804
million and a brand intangible assets impairment charge of $866
million related to the Omega acquisition.
[to top of second column] |
On an adjusted basis, the company earned $1.80 per share, above the
analysts' average estimate of $1.58, according to Thomson Reuters
I/B/E/S.
Perrigo's revenue rose 1 percent to $1.35 billion, which includes
the sales of $22 million from held-for-sale units.
Analysts on average were expecting revenue of $1.28 billion.
Separately, the company said it appointed two independent members,
Geoffrey Parker and Theodore Samuels, to its board.
Current board members Michael Jandernoa and Gary Kunkle will not
stand for reelection in 2017, the company added.
(Reporting By Aurindom Mukherjee in Bengaluru; Editing by Amrutha
Gayathri and Gopakumar Warrier)
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