Elan is expected to undertake the planned US$1 billion share buyback by next week. The Irish pharmaceutical firm's move may undermine the takeover offer by US fund firm Royalty Pharma. Elan is fighting off a proposal buying the company at US$11 per share from Royalty Pharma, has priced its buyback between US$11.25 to US$13.00 and the process begins Monday. Royalty Pharma has recognized that in the event of a share buyback, it may not be able to proceed with the planned purchase.
Elan had previously rejected Royalty Pharma's bid by increasing its offer to its shareholders to include a 20% of future royalties from the multiple sclerosis drug Tysabri. The original plan for the buyback would be implemented after the sale of the drug and chose to proceed with the plan after obtaining approval from antitrust regulators in both the US and in Spain. Elan also expects the full sale of Tysabri to be completed in the next few weeks.
Join the Conversation