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Perrigo expands global ambitions with Elan buy

Home/Pharma News | Posted 16/08/2013 1 Post your comment

US-based generics maker Perrigo Company (Perrigo) announced on 29 July 2013 that it would acquire Irish biotechnology company Elan Corporation (Elan) for US$8.6 billion.

The cash and shares deal fits well with Perrigo’s global expansion ambitions, as well as significantly reducing the company’s tax bill, as it takes advantage of Ireland’s corporate tax rate. Perrigo expects savings in tax and operating costs of more than US$150 million by moving its headquarters to Ireland, where corporation tax is 12.5% compared with the US rate of 35%.

The deal will also give Perrigo access to royalty income from Elan’s blockbuster multiple sclerosis treatment Tysabri (natalizumab). Tysabri generated revenues of US$1.6 billion last year and has been growing at a compound annual growth rate of 19%.

‘Through this transaction, Perrigo establishes a diversified platform for further international expansion’, stated Perrigo Chairman and CEO, Mr Joseph C Papa. He added that ‘the combination of Perrigo and Elan will create an industry-leading global healthcare company’ which can ‘capitalize on international market opportunities’.

Under the terms of the agreement Perrigo, which will give Perrigo shareholders 71% of the company, will pay Elan shareholders US$6.25 in cash and 0.07636 in shares of the new Perrigo for each Elan share. This assumes a value of each Elan share at US$16.50 based on the closing price per Perrigo share on 26 July 2013. This somewhat vindicates Elan’s management, who rejected a bid from Royalty Pharma in June 2013 for US$13 a share in cash and a further contingent value right, worth up to US$2.50 a share.

Perrigo started as a packager and distributer of patented medicines and household items back in 1887, and has since expanded into a global generics manufacturer with headquarters in the US and a presence in Australia, China, India, Israel, Mexico and the UK.

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Source: Perrigo

Comments (1)

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Posted 21/08/2026 by Rhonda Schreuder

I was diagnosed in 1996, before symptoms started. I am a pianist, suddenly unable to open my hands wide enough to get 8 keys. Nobody in my family had MS, nor my grandparents. Last year a cousin younger than me had MS, she is 40. I have primary progressive MS. I do not walk for the last 18 years, I was born in 1962. I have had 6 strokes and 1 heart attack. The Rebif (beta-1a) did very little to help me. The medical team did even less. After roughly five unending years of trauma in the family my MS developed into progressive. There have been many changes in the last 3 to 4 years. Many falls, many fractured bones, and three moves all in five years. I have gone downhill. Considerably. I used different supplements that didn't work. I started on MS-4 Protocol from www. Limitlessnaturalwellness .com , the MS-4 Protocol immensely helped my Multiple Sclerosis condition, I'm able to walk and the constant fatigues are gone. My life is back. I Adhere anyone reading this to try natural approach.

I was diagnosed in 1996, before symptoms started. I am a pianist, suddenly unable to open my hands wide enough to get 8 keys. Nobody in my family had MS, nor my grandparents. Last year a cousin younger than me had MS, she is 40. I have primary progressive MS. I do not walk for the last 18 years, I was born in 1962. I have had 6 strokes and 1 heart attack. The Rebif (beta-1a) did very little to help me. The medical team did even less. After roughly five unending years of trauma in the family my MS developed into progressive. There have been many changes in the last 3 to 4 years. Many falls, many fractured bones, and three moves all in five years. I have gone downhill. Considerably. I used different supplements that didn't work. I started on MS-4 Protocol from www. Limitlessnaturalwellness .com , the MS-4 Protocol immensely helped my Multiple Sclerosis condition, I'm able to walk and the constant fatigues are gone. My life is back. I Adhere anyone reading this to try natural approach.