Perrigo will not receive $400 million milestone payment
Shares of Perrigo Co. gained 0.8% in premarket trading on Wednesday, after the company disclosed in a financial filing that it will not receive a $400 million milestone payment based on 2020 sales of multiple sclerosis drug Tysabri. Perrigo announced in 2017 that it would divest its royalty rights for Tysabri to the privately held Royalty Pharma for $2.2 billion in cash and up to $650 million in potential milestone payments. (Prior to that deal, back in 2013, Biogen Inc. bought the remaining stake in the multiple sclerosis drug from Elan Pharmaceuticals Corp., which was acquired by Perrigo later that year. Elan retained royalty rights as part of the deal with Biogen.) Tysabri generated about $1.5 billion in sales for Biogen in the first three quarters of 2020; however, Perrigo said this week that the milestone payment of $400 was contingent on Tysabri sales that were not met in 2020. Perrigo's stock is down 27.6% over the past year, while the S&P 500 is up 18.6%.