Elan set to fend off take-over
Enlarge image


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.“



26.11.2015 Bioeconomy movers and shakers from every corner of the globe met this week at the world’s first Global Bioeconomy Summit in Berlin to discuss, debate and define better ways to ensure the bioeconomy succeeds on an international level.


24.11.2015 After weeks of speculation it is official: US pharma major Pfizer and Irish Botox maker Allergan will merge. With the deal, Pfizer is planning to dodge the high US taxes, causing indignation among US politicians.


23.11.2015 Amidst talk of the IPO window closing and cancelled flotations, diagnostics firms are still striking a chord with investors. Swedish Immunovia and German Curetis are successfully raising public money.


20.11.2015 French Sanofi and British AstraZeneca are giving open innovation a go: The two pharma giants will exchange thousands of compounds – for free.


19.11.2015 French gene editing company Cellectis has granted Servier the rights to bring cancer immunotherapy UCART19 to market. Servier in turn has teamed up with Pfizer to hurry development along.


17.11.2015 The first Italian accelerator specifically for biotech projects has been launched with help from Sofinnova Partners. The plan of BiovelocITA: to help Italy grow into one of Europe’s strongest biotech markets.


13.11.2015 Scientists in Bath, UK, have developed a medical dressing that turns fluorescent green when it detects infection. The researchers hope that the smart burns dressing will help fight antibiotic resistance.


13.11.2015 Out with the old: Roche is discarding four sites with 1,200 staff in an effort to restructure its manufacturing network for small molecules. Instead, a new manufacturing site will be built in Switzerland.


10.11.2015 Algae have many skills, but cancer fighting was not one of them – until now. Researchers from Australia and Germany have genetically engineered diatom algae to accurately deliver chemotherapeutic drugs.


10.11.2015 AstraZeneca has plucked Californian biopharma company ZS Pharma from under Actelion’s nose. The UK company is paying US$2.7bn (€2.5bn) to acquire ZS and its promising hyperkalaemia treatment currently under US regulatory review.


All Events


Strasbourg (F)

BioFIT 2015

Current issue

All issues

Product of the week


Stock list

All quotes


  • EPIGENOMICS (D)2.26 EUR20.86%
  • SAREUM HOLDINGS (UK)0.21 GBP10.53%


  • THERAMETRICS (CH)0.04 CHF-20.00%
  • CO.DON (D)2.35 EUR-7.84%
  • DIAMYD MEDICAL -B- (S)9.40 SEK-6.00%


  • PLETHORA (UK)5.50 GBP76.3%
  • PROTHENA PLC (IE)73.19 USD40.9%


  • EPIGENOMICS (D)2.26 EUR-49.9%
  • EVOCUTIS (UK)0.09 GBP-40.0%


  • KARO BIO (S)37.80 SEK5300.0%
  • CHRONTECH PHARMA (S)0.34 SEK1600.0%
  • GALAPAGOS (B)46.32 EUR259.1%


  • BIOTEST (D)15.77 EUR-80.4%
  • EVOCUTIS (UK)0.09 GBP-78.6%

No liability assumed, Date: 26.11.2015