IRISH drugmaker Elan Corporation today announced that its board has unanimously rejected Royalty Pharma’s takeover bid, as it undervalues the company.
US investment firm Royalty Pharma, through its subsidiary Echo Pharma Acquisition, offered $11.25 (£7.38) for each Elan share in an unsolicited tender offer.
“The offer from Royalty Pharma grossly undervalues Elan’s current business platform and our future prospects,” said Elan chairman Robert A. Ingram.
“As a result the board unanimously and without reservation rejected the offer.”
Citigroup, Morgan Stanley and Ondra Partners were advising Elan on the potential deal. A&L Goodbody and Cadwalader, Wickersham and Taft LLP acted as legal advisers.