Royalty Pharma has increased its offer to purchase Elan Corp by 12%. The new bid is now worth US$6.4 billion, even after the Irish drugmaker has been making moves seeking to prevent the takeover bid and boost revenues for the company.
The bid is an all-cash offer worth US$12.50 per American depositary receipt and is higher than the previous offer set at US$11.25 per ADR share. This is far higher than the closing price of US$11.67 per share at May 17's trade close. In New York, the ADR price increased by 4.6% to US$12.21 per share.
The bid by Royalty is lead by its founder, Pablo Legorreta who continues to pursue Elan, whose CEO is Kelly Martin initially rebuffed the first offer made. The Elan board declined the previous takeover bid last April 22 and will now convene to determine the value of the new offer.
In a statement, Elan advised, "In the meantime, Elan shareholders are strongly advised to take no action in relation to the Royalty Pharma offer."
Earlier this month, Elan had acquired Theravance Inc's royalties as well as a US$340 million takeover of AOP Orphan Pharmaceuticals AG and 48% of NewBridge Pharmaceuticials for a 48% share worth US$40 million.
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