US giant likely to net $150m in annual tax savings

US pharmaceutical Perrigo will benefit from around $150m (€113m) in annual tax savings from acquiring Elan, its chief executive said yesterday.

Furthermore, when asked by analysts about the possibility of selling the royalty payments from multiple sclerosis drug, Tysabri — one of the assets being inherited by Perrigo through the deal — company chief, Joe Papa said that it was not being planned, due to the chance of escalating royalty streams from a great asset, with that also likely to act as a source of future funding for the company.

As well as the Tysabri royalties, ownership of Elan will give Perrigo a number of international investments; a phase 2 trial compound for a number of illnesses, including Alzheimer’s; an operating base in Ireland and a scaled-up business model — the latter two providing a ready gateway for international expansion.