Elan rejects Royalty Pharma’s ‘grossly undervaluing’ €7bn takeover approach

Elan has rejected Royalty Pharma’s near €7bn takeover approach, saying the offer substantially undervalues the company and doesn’t account for the Irish firm’s future prospects.

“The offer from Royalty Pharma grossly undervalues Elan’s current business platform and our future prospects. As a result, the board unanimously — and without reservation — rejected the offer,” Elan’s chairman, Bob Ingram said.

In a statement, the Dublin-headquartered biotechnology firm said its rejection of the offer follows “careful review and consideration”, with the decision being reached with the assistance of the company’s executive management team and outside financial and legal advisers.