Abstract
Royalty Pharma has proposed acquiring the Irish drugmaker Elan for $6.6 billion. The offer comes in the wake of Elan’s announcement last month that it will sell its stake in the multiple sclerosis drug Tysabri to its partner, Biogen Idec, for $3.25 billion plus the promise of future royalty payments. Elan has no current pharmaceutical product. Elan responded by calling Royalty’s proposal “highly opportunistic” and contending that shareholders have not had time to assess the benefits of the Tysabri sale. The company also stated that it is evaluating investments in new drug assets. Royalty Pharma has made a business of acquiring pharmaceutical royalty interests. The New York City-based company claims its offer gives Elan shareholders the choice of a sale reflecting Elan’s fair value or remaining invested in a company with an uncertain future. Good assets in the pharmaceutical industry are in short supply, making Elan’s strategy of acquiring or ...
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