Elan shareholders didn't much care for Kelly Martin's $1 billion royalty deal with Theravance. Or any other deals, for that matter, aside from a share buyback. But that doesn't seem to upset Theravance CEO Rick Winningham even a little bit.
Elan's shareholders rejected a string of CEO Kelly Martin's deals today but did green-light a share repurchase pact--which the biotech says will put the hex on Royalty Pharma's hostile $8 billion offer for the company.
Elan's shareholders rejected a string of CEO Kelly Martin's deals today, but did green-light a share repurchase pact--which the biotech says will put the hex on Royalty Pharma's hostile $8 billion offer for the company. The hostile bid, though, was already being reconsidered at the end of last week, when Elan's board decided to formally put the company on the auction block, inviting Royalty to take a seat at the bidding table.
Scrambling to salvage its takeover attempt of Elan, Royalty Pharma today sent up an alarm signal telling investors that a majority of shareholders appear to have endorsed a $267 million stock buyback proposal, which would scuttle its bid.
The sparring between Elan and Royalty Pharma over a sweetened buyout bid is going into late rounds, with Royalty swinging away at Elan's recent string of deals in an effort to spur a shareholder revolt.
It's a great time to helm a large biotech company, generally. Big biotech players overall posted major growth last year, and their CEOs got richer in the process. Most got fat raises while others saw their bundles of pay pale in comparison to 2011 figures. We surveyed the total compensation packages of the 10 largest biotech companies based on market capitalization as of early May, sleuthing mostly proxy statements for the financial details on pay for some of the most powerful people in the industry. Check it out >>
In a dealmaking frenzy, cash-rich Elan has agreed to pay up to $693 million for a biotech company focused on rare diseases, picked up a big share of a start-up specialty pharma company based in Dubai, spun out its sole remaining clinical asset into a new company with $90 million in financing and set up an $800 million debt offering to help keep the deals coming.
Elan has wrapped up its $3.25 billion deal to sell its stake in Tysabri to Biogen Idec and begun to pivot to the next chapter in its storied journey, ready to unleash a burst of new acquisitions after it hopes to bury a buyout offer from an unwelcome suitor.
Anxious to win support for its $6.6 billion bid to snap up Elan before the biotech company can spending its $3.25 billion Tysabri windfall on new therapies, Royalty Pharma has announced it's ready to complete due diligence in a matter of days and is setting up meetings with Elan shareholders to press its case.
A royalty investment group believes it can one-up Elan CEO Kelly Martin on a strategy for the company's next chapter. Royalty Pharma today offered $6.55 billion to simply buy out the company, giving investors a choice between cash in hand and trusting Martin to invest the $3.25 billion Tysabri windfall wisely.