Royalty Pharma has raised its bid for Elan again. With sum m&a value now sitting at $6.7 billion with options bringing the overall deal value to $8 billion.
Royalty Pharma sweetened its hostile M&A takeover offer for Elan, the Irish drug company, on Friday for the second time in a month after it failed to get enough support from Elan’s shareholders.
Royalty Pharma increased its M&A offer to $13 for each Elan share from a bid last month of $12.50 a share and an initial offer of $11.25 in February.
The revised offer also includes an option for Elan shareholders to receive as much as $2.50 a share extra if the multiple sclerosis drug Tysabri meets certain regulatory approval and sales milestones.
The new M&A offer values the company at $6.7 billion, or $8 billion including the options.
Elan had rejected two previous offers by Royalty Pharma as too low and called the approach opportunistic.
Royalty Pharma said earlier on Friday that 7.5 percent of Elan’s shareholders had accepted the second offer.
Elan said it would assess the improved offer and advised its shareholders to take no action for now.
The takeover quarrel intensified this month when Elan sought legal help to fight Royalty Pharma’s approach. Describing Royalty Pharma’s bid as coercive, Elan won a temporary injunction in the United States against the approach.
The court is scheduled to meet again next week to decide on the issue.
Elan shareholders are scheduled to gather for an extraordinary shareholder meeting on June 17 to vote on four acquisitions that Elan negotiated after Royalty Pharma’s initial approach.
Royalty Pharma has been critical of the value of the transactions and said its offer for Elan would lapse if Elan shareholders approved the transactions.
Related
Report: Partnering Deals and Alliances with Big Pharma
View: Top 50 pharma – overview of top 50 pharmaceutical companies by revenue – partnering activity, deal news, partnering dealtalk
View: Top 50 biotech – overview of top 50 biotechnology companies by revenue – partnering activity, deal news, partnering dealtalk
View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity
Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now
Signup: Current Agreements Deals Review – monthly newsletter - reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now
Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more
