BioCentury
ARTICLE | Company News

Elan authorizes formal sale process

June 15, 2013 1:42 AM UTC

Elan Corp. plc (NYSE:ELN) said it is proceeding with a formal sale process "in light of the expressions of interest received to date," while suitor Royalty Pharma (New York, N.Y.) called the move a "frustrating tactic" intended to thwart its bid to acquire the biotech. Royalty is seeking to acquire Elan for $13 per share in cash plus a contingent value right (CVR) worth up to $2.50, which would value Elan at up to $7.9 billion.

Royalty's bid is contingent upon Elan shareholders voting down four transactions that the biotech has proposed since Royalty's offer was unveiled in February. Votes are due by Monday. Royalty said that a preliminary count of the 81% of votes received as of Thursday indicates Elan shareholders are poised to reject three of the transactions, including a proposal to pay Theravance Inc. (NASDAQ:THRX) $1 billion for a 21% interest in royalties Theravance is eligible to receive from partner GlaxoSmithKline plc (NSE:GSK; NYSE:GSK) for four respiratory programs. Royalty said a narrow majority of votes have been cast in favor of Elan's proposal to repurchase $200 million in shares. ...