Elan calls Royalty Pharma approach "highly opportunistic"

The board of Ireland-based drugmaker Elan Corp (NYSE: ELN) has acknowledged the takeover approach from private equity firm Royalty Pharma regarding an indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share capital of the company.

The response came late the same day the offer of $11 per share of Elan was made, valuing the company at around $6.55 billion (The Pharma Letter February 25). The news saw Elan’s share price rise 6.4% to $11.28 in New York trading and up 6.9% to 8.52 euros in Dublin.

As previously announced, in anticipation of executing and closing the recently-announced Tysabri (natalizumab) transaction (giving up rights to the multiple sclerosis drug in exchange for a $3.25 billion from partner Biogen Idec; TPL February 7 and 22), the Elan board, executive management and advisors have been working for over a year on a number of strategic transactions that, should they be consummated, would be to the benefit of our public shareholders.