Irish drugmaker Elan Corp., plc (ELN, ELA.L) said Thursday that its Board of Directors, after careful review and consideration and with the assistance of its executive management team as well as outside financial and legal advisors, has determined that privately held investment firm Royalty Pharma's revised offer announced on May 20, to acquire all of Elan's shares for $12.50 per share through its shell subsidiary Echo Pharma Acquisition Limited, substantially undervalues the company.
Robert Ingram, Chairman of Elan, said "This offer is no more than an opportunistic attempt to acquire our company at a substantial discount at our Shareholders' expense. Put simply, for Royalty Pharma to win, you our Shareholders must lose. Accordingly, the Board unanimously and without reservation rejects the revised Royalty Pharma offer."
On May 20, Royalty Pharma increased its offer for Elan to $12.50 per share in cash from its previous bid of $11.25 per share. The increased offer is fully financed, cash confirmed and not conditional on due diligence. On April 22, Elan's Board had also rejected the revised $11.25 per share offer from Royalty Pharma.
It was in February that Royalty Pharma made the initial proposal to acquire Elan for $11 per share. At that time, Elan's enterprise value amounted $10.35 per share or $3.135 billion, while the proposed enterprise value aggregated $3.531 billion or $11 per share.
The initial bid was made after Elan agreed to sell its stake in multiple sclerosis drug Tysabri to biotechnology company Biogen Idec Inc. (BIIB) for $3.25 billion in upfront payment.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.