The board of directors of Elan, the Irish pharmaceutical company has unanimously rejected the formal bid from Royalty Pharma. The board also took a shot at the offer, saying that the US investment firm's offer 'grossly undervalues' the company.
The offer of Royalty Pharma is at US$11.25 per share. The new offer placed the share values at US$12 per share or a total worth of US$7.3 billion. The new offer made was placed a week ago with premium placed on the royalty rights on the main drug in its portfolio.
The new offer though was dependent on the outcome of the US$1 billion buy back share program undertaken by Elan. Royalty then lowered its share offer from US$12 to just US$11.25 because of the buyback pricing.
In last week's buyback, the majority of the shares sold were from Johnson and Johnson. The transactions put a new twist on the Elan-Royalty Pharma saga.
Join the Conversation