Why Perrigo Is Up More Than 10% Today
Shares of over-the-counter drugmaker Perrigo (NYSE: PRGO) are up 10.5% as of mid-session on Thursday in response to news that it has settled a tax assessment made by Ireland for less than 300 million euros (roughly $340 million), and at the same time has collected $355 million euros following a successful arbitration in Belgium.
Perrigo -- the name behind several private-label OTC goods, a handful of prescription pharmaceuticals, as well as teeth-whitening brand Rembrandt -- announced on Thursday that it has settled a long-standing tax impasse with the Irish Office of the Revenue Commissioners at a cost much lower than initially feared. In 2018 Ireland's taxation arm claimed the company owed the country 1.6 billion euros in taxes. That number, however, has been pared back to only 297 million euros. After applying related credits, Perrigo will only be paying about 266 million euros.
For perspective, the company sold more than $5 billion worth of goods last year, and turned $115 million of that revenue into operating income.
Source Fool.com
