Royalty Pharma offers to buy Elan for about $6.5B
NEW YORK (AP) — Royalty Pharma said Monday that it wants to buy Elan Corp. PLC for about $6.5 billion, but has yet to receive a formal response from the Irish drugmaker.
The $11-per-share offer, which was made earlier this month and applies to both Elan's regular and American depository shares, represents a 4 percent premium over its closing ADS price on Friday.
The news sent Elan's U.S. shares up 54 cents, or 5.1 percent, to close at $11.14 Monday, after peaking at $11.62 shortly after the session's opening bell.
Royalty Pharma, a private company based in New York, acquires royalty interests in marketed and late-stage biopharmaceutical products. It does not discover, develop or market drugs.
The company said Monday that Elan hadn't formally responded to its proposal and that it's been unsuccessful in engaging the company in talks since the proposal was made.
Elan released a statement questioning the timing of Royalty Pharma's announcement, calling it "highly opportunistic," but left the door open for future offers from Royalty Pharma or other suitors, saying that it will consider any "credible" offer.