Perrigo Shares Down 9% After Company Reports Loss, Sells Drug Royalties

Shares of Perrigo Co. Plc fell more than 9% late Monday after the Dublin, Ireland, -based drug maker reported unaudited 2016 results and said it had agreed to sell the royalties from Tysabri, a multiple sclerosis drug. The Tysabri royalties would be sold to RPI Finance Trust, an affiliate of Royalty Pharma, for up to $2.85 billion, composed of $2.2 billion cash at closing and up to $650 million in payments based on future net sales. The deal is expected to close within 30 business days, subject to certain conditions, Perrigo said in a statement. Perrigo reported a preliminary 2016 loss in a range of $28.85 and $29 a share, and preliminary adjusted earnings per diluted share in the range of $7.10 a share and $7.25 a share. Perrigo said it expects 2017 reported earnings per share to be in the range of $3.39 to $3.74, and adjusted earnings per diluted share to be in the range of $6.30 to $6.65. The company also appointed Ron Winowiecki as acting chief financial officer, effective immediately, after the resignation of Judy L. Brown, who joined another pharmaceutical company. Perrigo is conducting a search for a permanent CFO, "which includes Mr. Winowiecki as a key candidate," the company said in a separate statement.