Royalty Pharma launches $6.6 bn bid for Irish drug maker Elan Corp
26 Feb 2013
Royalty Pharma, a US firm that invests in the pharmaceutical industry, today launched an unsolicited $6.6-billion (€5 billion) bid for Irish neuroscience focused biotechnology company Elan Corp.
New York-based Royalty Pharma, which buys royalty streams of patented drugs, is offering to pay $11 per share, a 4 per cent premium to Elan's closing price on Friday on the New York Stock Exchange.
The offer comes just three weeks after the Dublin-based drug maker sold its interests in its multiple sclerosis treatment drug Tysabri, to its US partner Biogen Idec for $3.25 billion plus multi-tiered future royalties on sales of the drug. (See: Biogen Idec to pay Elan Corp $3.25 bn plus for full rights of multiple sclerosis drug Tysabri)
Under the royalties plan, Biogen will pay 12 per cent of sales for the first 12 months and after that, Elan will receive 18 per cent on sales up to $2 billion and 25 per cent on sales of more than $2 billion.
Tysabri generated $1.6 billion in sales in 2012 and accounted for almost all of Elan's revenue.
Royalty Pharma said it had not received a formal response from Elan although it had made an informal offer on 18 February.
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