MedNous

Elan restructures in a bid to remain independent

Monday 20 May 2013

Country: Ireland

Elan Corporation Plc has announced a further restructuring and a share repurchase plan in a bid to win over shareholders who are being wooed by the US investment group Royalty Pharma in an unsolicited takeover bid.

In a series of proposed transactions announced on 20 May, the Dublin, Ireland-based company said it would seek shareholder approval to buy an orphan drug company and to take a 48% stake in a specialty pharma company that would give it access to markets in the Middle East, Africa and Turkey. It is also proposing to repurchase $200 million of its shares. The plans will be put to shareholders for a vote on 17 June.

The latest moves follow Elan’s announcement on 13 May of an agreement with Theravance Inc of the US to gain rights to potential future royalty pay