The board of Elan recently waved off an $11-a-share buyout offer from Royalty Pharma as "highly conditional" and told the group to come back when it had something more concrete to talk about. Now Royalty is back with a rock-solid, all-cash $12-a-share offer and a bit of dismissiveness in its own talk.
Being a shareholder in Elan these days is a bit like taking a multiple choice quiz in an advanced MBA class.
Elan has wrapped up its $3.25 billion deal to sell its stake in Tysabri to Biogen Idec and begun to pivot to the next chapter in its storied journey, ready to unleash a burst of new acquisitions after it hopes to bury a buyout offer from an unwelcome suitor.
Biogen Idec's ($BIIB) newly approved Tecfidera has a wholesale price of $54,900 per year, the biotech giant revealed on Friday. With the U.S. market debut of the oral multiple sclerosis drug set for Monday, Biogen plans to hit the market for MS pills with a lower price than Novartis' ($NVS) Gilenya, which is arguably the company's top competition.
The FDA gave its final blessing to Biogen Idec's much-anticipated multiple sclerosis pill Tecfidera. It's the third oral MS treatment to hit a market long limited to injectable drugs. But Biogen believes--and many analysts agree--that Tecfidera can surpass its oral competitors, and quickly.
Elan ($ELN) has found a way to sweeten the pot for investors who may be tempted to sell their shares to a royalty group offering to cash them out following the $3.25 billion Tysabri deal.
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.
Dublin-based Elan has told investors how it plans to play the first two rounds in a $3.25 billion game set up by the sale of Tysabri. In a statement this morning the biotech company said it will use the first $1 billion in a share buyback aimed at returning some of the money to investors
Some shareholders started grumbling that they would like to get their hands on the windfall as soon as they learned Elan would sell its key asset, multiple sclerosis drug Tysabri, to Biogen Idec ($BIIB) for $3.25 billion.
Elan CEO Kelly Martin played head cheerleader for yesterday's $3.25 billion deal with Biogen Idec for its 50% stake in Tysabri, but he couldn't talk up the stock price. Now that he's completed a blockbuster deal to end the partnership, Elan is left with a wad of money to pursue Martin's plan to acquire both approved and experimental drugs.