Elan’s behaviour is “deplorable”

FIONA REDDAN

Royalty Pharma has described the actions of Elan in attempting to prevent its shareholders from receiving information on the US drugs firm's hostile bid as "deplorable".

“Royalty Pharma deplores what it believes are efforts by Elan to deprive shareholders of an opportunity to consider Royalty Pharma offer,” the company said in a statement today, adding, “the Elan Board’s behavior in filing these lawsuits is deplorable”.

On Monday, Elan filed a lawsuit in the Irish High Court seeking an emergency order preventing Royalty Pharma from distributing a proxy statement to shareholders of Elan. This was later withdrawn after it became evident that the Irish takeover Panel was considering the case.

Elan also filed on Monday a lawsuit in the US District Court for the Southern District of New York challenging Royalty Pharma’s offer for Elan shares. This complaint alleges, among other things, that the “offer is unfair and financially inadequate, that Royalty Pharma’s tender offer documents contain material misstatements and omissions, and seeks declaratory and injunctive relief to prevent or delay Royalty Pharma from proceeding with the tender offer”.

Following oral argument, the court set a hearing date of June 11th, 2013 to consider Elan’s request for a preliminary injunction and is expected to rule on the matter prior to the June 17th EGM. The court also entered an order ordering expedited discovery and prohibiting Royalty Pharma from “consummating or closing” the increased offer prior to the resolution of the matter.

Royalty Pharma said that it believes that this action is “entirely without merit” and that it intends to “oppose it vigorously”.