Elan board rejects latest Pharma offer
THE board of Irish drug firm Elan has rejected the revised offer put forward by Royalty Pharma.
The US company had increased its bid to $13 (€9.80) per share in cash plus a contingent-value right worth up to $2.50 (€1.90) per share.
But Elan said that the gap between what it believes to be the underlying value of the company and the new bid remained significant.
Elan said the revised offer continues to "grossly undervalue" the company's multiple-sclerosis drug Tysabri.
"The value gap between the underlying value of Elan plc and the totality of its business platform and the Royalty Pharma/Echo bid remains significant and the $13 cash and $2.50 CVR structure continues to be wholly inadequate for Elan shareholders," the Irish drug company said in a statement.
Elan also said that in response to several "unsolicited enquiries", it has instructed advisers to assess any or all tangible indications of interest.
It has again advised shareholders not to take any action in relation to the offer.
Elan is holding an extraordinary general meeting next Monday to ask shareholders to approve a number of transactions, including a near-$1bn investment in Theravance and a share buyback.
Royalty again urged Elan shareholders to vote against the four resolutions at the EGM.