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.

Elan has said it will consider any credible takeover proposal made to the company, but noted “the heavily conditional nature” and “highly opportunistic timing” of Royalty Pharma’s announcement that it has made an indicative proposal to buy the biotech firm for $6.6bn (€4.97bn).

By the end of the year, Elan should have a clearer idea if its most prominent in-trial treatment for Alzheimer’s disease has a commercial future.

ELAN is hoping to double its share of the multiple sclerosis treatment market, — through its headline drug, Tysabri — to 20%, within the next four years.