LONDON - Royalty Pharma withdrew its takeover offer for the Irish drug company Elan on Tuesday, ending a fierce four-month acquisition battle.
Royalty Pharma said it was no longer seeking permission from the Irish Takeover Panel to continue with its $6.7 billion offer for Elan. Royalty Pharma had asked for a judicial review because its offer had lapsed after Elan shareholders voted in favor of a share buyback plan on Monday. Royalty Pharma had made its offer subject to Elan shareholders’ rejecting the share plan.
“In light of recent developments, we are no longer pursuing the judicial review we had requested,†Pablo Legorreta, the chief executive of Royalty Pharma, said in a statement.
The decision adds to uncertainty about Elan’s future. Under pressure from Royalty Pharma’s unsolicited bid, which Elan’s board rejected as too low, the company put itself up for sale last week. It said it had received some expression of interest but so far declined to identify any potential partners or buyers.
A string of acquisitions by Elan soon after Royalty Pharma’s approach, including royalties on new respiratory medicines from Theravance of the United States, were rejected by Elan’s shareholders at the meeting on Monday. Royalty Pharma had encouraged shareholder to vote against the purchases, criticizing their price and rationale.
Elan said Monday that its financial advisers, Citigroup, Davy Corporate Finance, Morgan Stanley and Ondra Partners, contacted Royalty Pharma over the weekend to invite the company to take part in the official sale process. JPMorgan Chase, Bank of America Merrill Lynch, Groton Partners and Investec are advising Royalty Pharma.
