Royalty Pharma Drops Hostile Bid for Elan

Health CareReuters

Royalty Pharma's hostile $8 billion bid for Irish drug firm Elan lapsed on Tuesday when it withdrew an appeal against a ruling by Ireland's regulator on takeover battles.

U.S.-based Royalty had made its offer conditional on Elan shareholders rejecting all resolutions put to a vote at a meeting on Monday, but the owners' approved one of the four resolutions, for a share buyback.

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Royalty had said it meant its conditionality to apply to only two other resolutions relating to acquisitions but the Irish Takeover Panel had ruled that it could not modify the terms at this stage of the takeover contest.

Royalty subsequently appealed against this ruling.

"Royalty Pharma announced today that it had withdrawn its request for a judicial review of the Irish Takeover Panel's decision requiring it to lapse its offer for Elan Corporation," it said in a statement.

Meanwhile Elan put itself up for sale last week after it said it had received interest from other companies.

Royalty's bid offered $13 in cash per share as well as a "contingent value right" that could add a further $2.50 per share if blockbuster drug Tysabri hit certain sales milestones.

Elan shares were 0.5 percent lower at 10.04 euros ($13.4) at 7:05 a.m. ET.

(Reporting by Sam Cage; Editing by Greg Mahlich)