€6.5bn takeover of Elan completed

Leading US generic drugmaker Perrigo has formally completed its $8.6bn (€6.5bn) takeover of Irish biotech firm Elan in a cash and share deal.

The enlarged entity will now be named Perrigo Company plc and will be incorporated in Ireland, while its shares will be listed on the New York and Tel Aviv stock exchanges. Elan’s shareholders will receive their payment entitlements within the next two weeks.

Perrigo is the market leader for generic drugs in the US. Its purchase of Elan gives it royalty rights to the leading multiple sclerosis treatment Tysabri, of which Elan used to own 50%; and significant tax benefits from being domiciled in Ireland.

Earlier this year, Perrigo’s management said the company could benefit from around $150m in annual tax savings through the acquisition.

The deal was initially agreed in July, but only received shareholder approval last month and commercial court approval last week.

Perrigo yesterday said the transaction will create “a global healthcare company with an industry-leading growth profile and the geographic scale and scope to continue building a truly differentiated business”.

Joseph Papa, Perrigo’s chairman and chief executive, added: “We expect the combined companies will create tremendous value for shareholders for years to come.”