Elan rejects 'low valuation' from Royalty
DRUG company Elan has dismissed low valuations placed on its assets by US-based Royalty Pharma, which has targeted the firm in a $6.4bn (€5bn) hostile takeover bid.
Elan said Royalty's bid "substantially undervalues it".
The Irish company claimed in a letter to shareholders yesterday that its shares are worth between $15.50 and $20.80 each. That is much higher than the $12.50 Royalty insists they are worth.
Elan sold its 50pc stake in multiple sclerosis drug Tysabri for $3.25bn earlier this year, but will continue to receive substantial royalties from sales of the treatment.
The firm has unveiled a number of transactions from share buybacks to company acquisitions as it seeks to reinvent itself following the Tysabri disposal.