Perrigo says IRS throws out $843M tax adjustment

• Perrigo (NYSE:PRGO) said it has received notification from the U.S. Competent Authority, an office within the IRS, that a previously claimed $843M tax adjustment and penalty is no longer due.
• The issue had to deal with the 2011-2013 tax years from Athena Neurosciences and its parent company, Elan Corp. Athena was bought by Elan, which was subsequently acquired by Perrigo (PRGO) in 2013.
• Perrigo (PRGO) said that following a review of the case by the IRS, it agreed to fully withdraw the proposed adjustments and considers the case now closed.
• "The Company believes that any prior uncertainty regarding the tax treatment of the Tysabri royalty is now completely resolved," Perrigo said in an SEC filing.
• The company added that in fiscal 2023 Q2, it will release reserves related to the adjustment.

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