) Board of Directors recently rejected Royalty Pharma's offer for
the third time. Following a thorough review and consideration
process, with the assistance of its executive management team
along with outside financial and legal advisors, the company
concluded that Royalty Pharma's last offer also substantially
undervalued Elan. After arriving at the decision, Elan's
management advised its shareholders not to act on Royalty
Earlier this week Royalty Pharma raised its offer to acquire
all shares of Elan to $12.50 per share from $11.25 per share.
Royalty Pharma's raised offer did not include the $1.00 per share
net cash right, present in the previous offer. Royalty Pharma
also announced that it will reduce the Acceptance Threshold from
90% to 50% of Maximum Elan Shares Affected plus one Elan share in
accordance with the terms of the revised offer document.
We remind investors that Royalty Pharma's previous two offers
of $11.00 per share and $11.25 per share were also rejected by
We believe investor focus will remain on Elan's recently
announced strategic initiatives going forward. Elan has planned a
couple of acquisitions in addition to divestment of its pipeline
candidate ELND005 (agitation/aggression in Alzheimer's disease
and Downs Syndrome), and the company also intends to initiate a
cash repurchase program among other transactions. However, these
transactions will go through upon approval from Elan's
shareholders after the company's Extraordinary General Meeting in
June this year.
Of late Elan was also in the news when it inked a deal with
) to purchase a participation interest in potential future
royalty payments for a one-time cash payment of $1.0 billion.
Elan is expected to receive a 21% participation interest in
potential future royalty payments that Theravance would likely to
) from four respiratory programs.
Elan presently carries a Zacks Rank #2 (Buy).
Jazz Pharmaceuticals Public Limited Company
) currently looks better positioned with a Zacks Rank #1 (Strong
ELAN CP PLC ADR (ELN): Free Stock Analysis
GLAXOSMITHKLINE (GSK): Free Stock Analysis
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
THERAVANCE INC (THRX): Free Stock Analysis
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