Royalty Pharma raises offer to buy drugmaker Elan

AP News
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Posted: Jun 07, 2013 9:15 AM

Royalty Pharma is once again raising its offer to buy Elan Corp. and still insists that shareholders should reject the Irish drugmaker's push to refocus its business.

The New York company says it will now pay $13 per share in cash for each Elan share, and it will give stockholders the right to an additional $2.50 per share in milestone-based payments. That's up from a previous bid of $12.50 per share.

Royalty is a privately held company that buys royalty interests in drugs and late-stage drug candidates. It initially offered to buy Elan in February for $11 per share.

Elan has rejected Royalty's previous bids. It recently announced a string of acquisitions as it attempts to diversify after selling its interest in the multiple sclerosis treatment Tysabri.