So many shareholders have already voted against Elan’s proposed $1 billion deal for royalties from Theravance inhaled drug products, says Royalty Pharma, that the proposal is unlikely to pass at the upcoming meeting of Elan shareholders on June 17. Without citing any reason, Elan’s board has now announced that it will proceed with the sale of the company, saying that “As part of this process, Royalty Pharma will be invited to participate if they so wish.”
Royalty has been pursuing a hostile takeover of Elan and advising shareholders to vote against the Theravance transaction, leading Elan to get an injunction against the company in an Irish court. According to Royalty, the Irish Takeover Panel will require it to withdraw its offer if one of the other proposals is approved, and the company is appealing to the courts to overturn that decision.
Read the Royalty Pharma press release.
Read the Elan press release.
