News

Elan set to fend off take-over
Enlarge image

BusinessIreland

Elan set to fend off take-over

05.03.2013 - Irish Elan has offered its shareholders 20% of its annual Tysabri revenues in order to fight off a US$6.55bn bid of US investor firm Royalty Pharma.

Elan said on Monday it would give shareholders 20% of future royalties from multiple sclerosis drug Tysabri, which it plans to sell to its U.S. partner Biogen Idec in a US$3.25bn deal. Last year Tysabri made US$1.6bn, an up of 8% compared to the year before. Analysts expect the sales of the antibody drug to grow further. The move is intended to fight off a take-over from U.S. investment firm Royalty Pharma, which made a €6.55 bn bid last week. Elan said that it would prefer giving US$1bn dividend to its investors and use the rest of the Tysabri money for strategic acquisitions. Instead of being dependent of one top-selling drug, Elan wants to broaden its pipeline and to gain more flexibility.

Elan said that the "unique" cash dividend policy would give shareholders the right to enjoy unlimited participation in the upside from Tysabri sales. "This provides Elan and our shareholders with significant near and longer-term benefits," stressed Elan’s CEO Kelly Martin. The Dublin-based company announced shareholders can expect the first of twice-yearly dividend payments in the fourth quarter of 2013, subject to the closing of the Biogen deal.

Despite Elan's rejection, Royalty plans to make its case to some of the drugmaker's largest shareholders later this week. Elan said most of its shareholders did not view Royalty's idea as worth consideration. "We simply don't view the Royalty indication of interest as credible. The vast majority of our investor base simply don't view Royalty's indication as worthy of any discussion," Chief Executive Kelly Martin told. "I wish Royalty well, they can do what they need to do, but we're not in any discussions with them at all on any topic and we don't see any need to have those discussions," stressed Martin.

Royalty Pharma, which buys royalty streams of patented drugs, is not giving up, however. "We are very serious about our offer," said CEO Pablo Legorreta. In fact, Royalty is seeking talks with „ a number of Elan's large shareholders.“

© eurobiotechnews.eu/tg

http://www.european-biotechnology-news.com/news/news/2013-01/elan-set-to-fend-off-take-over.html

BusinessBelgiumSpain

31.07.2015 Spanish business developer Genetrix has sold its clinical stage cell therapy development subsidiary Coretherapix to Belgian TiGenix in a deal worth up to €267m.

BusinessUKSwitzerland

29.07.2015 Newly founded Mereo BioPharma has acquired three mid-stage clinical assets from Novartis. In turn, the Swiss pharma concern will hold a stake in the UK company. Other investors are also on board.

M&AIreland

28.07.2015 Irish Allergan is bolstering its product pipeline with a takeover of CNS specialist Naurex. At the same time, the company is divesting its global generics business to Teva.

Public marketGermanyFranceBelgiumFinlandDenmarkUK

24.07.2015 Biotech companies across Europe continue to raise cash on the public markets, generating €3bn in total financing proceedings in the first half of 2015. Compared to 2014, this is almost twice as much.

FinanceFrance

23.07.2015 US money keeps flowing into Europe's biotechs. As the race for the peanut allergy market heats up, NASDAQ listed French biotech DBV has announced the successful closing of US$281m (€256m) share offering for its allergy products.

BioplasticsFrance

21.07.2015 French biotech Deinove has launched a R&D programme to produce the versatile chemical intermediate muconic acid by using a designer variant of the Deinococcus bacteria.

BusinessFrance

16.07.2015 Sanofi has announced plans to restructure its business in five standalone global business units starting in January 2016. The goal is to promote growth and help the company launch a catalogue of new drugs over the next five years.

R&DUK

15.07.2015 GlaxoSmithKline (GSK) has become the first drugmaker to join the Francis Crick Institute. It is a consortium made up of six scientific and academic institutes to conduct research and drug development in the UK. The new institute is set to become a world-leading centre of biomedical research and innovation.

FundingUK

13.07.2015 UK drug developer ReNeuron has pulled in £68.4m (€96m) for its cell therapy pipeline for stroke and blindness treatments. Biotech guru Neil Woodford increases his fund’s stake in ReNeuron.

BusinessSweden

10.07.2015 Karolinska Development has slashed the reported value of its portfolio by almost half by revising its valuation model for early stage companies and divesting its shares in pain med maker Pharmanest.

Events

All Events

Current issue

All issues

Product of the week

Products

Stock list

All quotes

TOP

  • BIOTIE THERAPEUTICS (FI)0.23 EUR43.75%
  • DIAXONHIT (F)0.79 EUR14.49%
  • ACTIVE BIOTECH (S)12.35 SEK10.27%

FLOP

  • ZELTIA (E)3.69 EUR-8.44%
  • SWEDISH ORPHAN BIOVITRUM (S)13.05 USD-6.12%
  • ALMIRALL (E)17.75 EUR-5.84%

TOP

  • DBV TECHNOLOGIES (F)79.24 EUR50.2%
  • BIOTIE THERAPEUTICS (FI)0.23 EUR43.8%
  • DIAXONHIT (F)0.79 EUR43.6%

FLOP

  • BIOTEST (D)25.52 EUR-63.3%
  • BIOTECH PHARMACON (N)9.45 NOK-46.0%
  • EVOCUTIS (UK)0.17 GBP-22.7%

TOP

  • ADOCIA (F)86.78 EUR577.4%
  • FORMYCON (D)28.40 EUR323.2%
  • DBV TECHNOLOGIES (F)79.24 EUR317.5%

FLOP

  • CHRONTECH PHARMA (S)0.01 SEK-88.9%
  • NEUROVIVE PHARMACEUTICAL AB (S)22.10 SEK-70.6%
  • NEOVACS (F)1.02 EUR-68.6%

No liability assumed, Date: 02.08.2015