Perrigo will pay $8.6bn, or $16.50 per share for Elan which consists of $6.25 in cash per share and 0.07636 shares in the enlarges group in return for eash share in the irish company.
Perrigo CEO Joseph Papa said, “Through this transaction, Perrigo establishes a diversified platform for further international expansion.
“We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan’s assets, including a large cash balance and a double-digit royalty claim on Tysabri, a blockbuster product that generated revenues of US$1.6bn last year and has been growing at a compound annual growth rate of 19 per cent.”
Elan put itself up for sale in June after receiving approaches from potential suitors following the launch of a hostile takeover by Royalty Pharma, which ultimately failed.
Royalty Pharma made an offer of $13 per share and a further $2.5 in contingent value rights, which Elan said “grossly undervalued” its multiple sclerosis drug Tysabri.
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