Elan Initiates Formal Sale Process of Company - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Elan Initiates Formal Sale Process of Company
The move follows rejection of Elan shareholders of certain key deals and withdrawal of Royalty Pharma bid.



Elan announced on June 14, 2013, that it is proceeding with a formal sale process of the company and will invite Royalty Pharma, who had made an earlier $8-billion unsolicited takeover bid for the company to participate if Royalty Pharma wishes. On June 17, Elan shareholders voted in favor of a proposal to buy back $200 million in shares using the proceeds of Elan's sale of its share of multiple-sclerosis drug Tysabri (natalizumab). In response, Royalty Pharma withdrew its request for a judicial review of the Irish Takeover Panel’s decision requiring it to lapse its offer if Elan shareholders approved the share-repurchase program.

Although Elan shareholders approved the share repurchase at the company’s extraordinary general meeting held on June 17, they voted down three other transactions: a $1-billion deal with the US pharmaceutical company Theravance that was announced in May 2013; a proposed EUR-263.5 million ($350-million) acquisition of AOP Orphan Pharmaceuticals, a Vienna-based pharmaceutical company focused on rare and orphan diseases; and the divesture of Elan’s ELND005, a drug in clinical development for treating separate indications of Alzheimer's disease and bipolar disease to Speranza Therapeutics. In the proposed Theravance deal, Elan would have paid $1 billion in a royalty-participation agreement in which Elan would receive a 21% stake in potential future royalty payments related to four respiratory programs in which Theravance is partnered with GlaxoSmithKline.

ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
FDASIA was signed into law two years ago. Where has the most progress been made in implementation?
Reducing drug shortages
Breakthrough designations
Protecting the supply chain
Expedited reviews of drug submissions
More stakeholder involvement
Reducing drug shortages
35%
Breakthrough designations
12%
Protecting the supply chain
35%
Expedited reviews of drug submissions
12%
More stakeholder involvement
6%
View Results
Jim Miller Outsourcing Outlook Jim Miller Health Systems Raise the Bar on Reimbursing New Drugs
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerThe Mainstreaming of Continuous Flow API Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler Industry Seeks Clearer Standards for Track and Trace
Siegfried Schmitt Ask the Expert Siegfried SchmittData Integrity
NIH Translational Research Partnership Yields Promising Therapy
Clusters set to benefit from improved funding climate but IP rights are even more critical
Supplier Audit Program Marks Progress
FDA, Drug Companies Struggle with Compassionate Use Requests
USP Faces New Challenges

Click here