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

BusinessUK

20.08.2014 Biopharmaceutical contract manufacturer Fujifilm Diosynth Biotechnologies is expanding its cell culture manufacturing capacity further with a new 2,000l single-use bioreactor at the company’s site in Billingham, UK.

BusinessEUGermanyUK

15.08.2014 Some of Europe’s biggest pharma companies are competing in a bidding war for US biotech Intermune Inc., Bloomberg reports, citing insider reports as the source.

ResearchEUGermanyUK

13.08.2014 The Ebola epidemic is still raging on in West Africa and thus far there is

neither vaccine nor cure for the viral disease. The only flickers of hope:

an experimental antibody serum and an early-stage vaccine.

BusinessFrance

11.08.2014 Will Sanofi succeed where Pfizer failed? The French pharmaceutical company has taken on the commercialisation of Mannkind Corporation’s inhaled insulin product Afrezza.

ResearchSwedenGermany

08.08.2014 Boehringer Ingelheim is walking away from Swedish Orexo's prostaglandin inhibition project OX-MPI. Germany's largest researching pharmaceutical company had been responsible for the project's research and development since 2005.

ResearchSwitzerlandDenmark

06.08.2014 Roche is re-expanding its involvement in RNAi technologies. The Swiss pharmaceutical company will pay up to €335m for the acquisition of the Danish company Santaris Pharma A/S.

ResearchUKSwitzerland

03.08.2014 In its efforts to become the leading country in genetic research, the UK has attracted investments worth more than £300m (€376m) to map 100,000 human genomes by 2017.

BusinessSpainUKSweden

31.07.2014 Astrazeneca is buying the rights to Almirall’s respiratory drugs in a deal worth up to €1.56bn.

BusinessFranceGermanySwitzerlandUK

30.07.2014 Rumours have it that French Danone wants to sell its medical nutrition business to US drugmaker Hospira for US$5bn in yet another tax inversion deal.

Events

All Events

Current issue

All issues

Product of the week

Products

Stock list

All quotes

TOP

  • SANTHERA74.95 CHF10.30%
  • BIOTEST80.50 EUR6.83%
  • WILEX2.22 EUR5.71%

FLOP

  • 4SC1.20 EUR-6.25%
  • VITA 343.78 EUR-2.83%
  • EPIGENOMICS3.12 EUR-2.50%

TOP

  • MAGFORCE6.50 EUR20.4%
  • LONZA101.10 CHF9.2%
  • SANTHERA74.95 CHF7.8%

FLOP

  • WILEX2.22 EUR-32.3%
  • VITA 343.78 EUR-20.1%
  • MOLOGEN7.80 EUR-17.5%

TOP

  • SANTHERA74.95 CHF3556.1%
  • CO.DON2.50 EUR228.9%
  • PAION2.40 EUR185.7%

FLOP

  • CYTOS0.27 CHF-93.3%
  • MEDIGENE4.60 EUR-66.4%
  • THERAMETRICS0.08 CHF-46.7%

No liability assumed, Date: 20.08.2014