Royalty Pharma plans to tap Elan investors on offer: source
New York-based investment firm Royalty Pharma does not want to take "no" for an answer to its $6.6 billion offer for Irish drugmaker Elan Corp.
The company plans to spend the next few weeks calling Elan shareholders about its offer made on Feb. 18, according to a source familiar with the situation.
Royalty Pharma, which buys royalty streams of patented drugs and whose portfolio includes rheumatoid arthritis treatments Humira and Remicade, is turning to Elan's investors because it has received no formal response from the company about its offer, said the source, who wished to remain anonymous because of not being allowed to speak to the media.
Elan's biggest shareholder is Johnson & Johnson with an 18 percent stake.
An Elan spokesman declined to comment, as did Johnson & Johnson. A Royalty Pharma spokesman did not return a request for comment.
Royalty Pharma's offer, worth $11 per Elan share, came just days after Elan announced it had sold its 50 percent interest in multiple sclerosis drug Tysabri for $3.25 billion plus future royalty payments to US partner Biogen Idec.
As a result of the Tysabri sale, Elan announced on Friday that it would return $1 billion to shareholders and make acquisitions with the rest of the $3.25 billion raised from the deal. Elan did not disclose the Royalty Pharma offer, which was not a formal bid.
Elan, in a statement on Monday, said Royalty Pharma's bid was an "indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share
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