Drugmaker Elan plans to explore sale of company

Associated Press + More

By The Associated Press, Associated Press

Drugmaker Elan says it will explore a possible sale of the company after fending off several takeover bids this year from Royalty Pharma.

The Irish company says it is proceeding with a formal sale process, and Royalty can participate if it wants. But Elan also wants its shareholders to steer clear of Royalty's latest hostile bid.

Royalty is a privately held New York company that buys drug royalty interests.

Last week it offered to pay $13 per share for each Elan share plus up to $2.50 per share in payments based on performance milestones. That totaled about $7.76 billion not counting the milestone payments.

Elan Corp. PLC's board rejected that bid and has said it received interest from other parties it didn't name.

Its shares rose more than 9 percent in morning trading Friday.

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