Perrigo buys Elan for £5.6bn
PERRIGO today agreed to buy Irish pharmaceuticals firm Elan for $8.6bn (£5.6bn), giving the US drugmaker an operating base in Ireland and gateway for expansion into international markets.
The deal – which ends a long-running takeover battle between Elan and US investment firm Royalty Pharma – is expected to create operating expenses and tax savings of over $150m.
Elan shareholders will receive $6.25 in cash and 0.07636 shares in Perrigo for each Elan share.
“Through this transaction, Perrigo establishes a diversified platform for further international expansion,” said Perrigo chairman and chief executive Joseph C. Papa.
“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 $1.6bn last year and has been growing at a compound annual growth rate of 19 per cent.”
Elan chief executive G. Kelly Martin commented: “The Elan platform has been constructed over the years to provide a unique and compelling investment thesis for our shareholders.
“This transaction underscores the tremendous value of Elan's platform. The new combined company should deliver value, growth and diversification to shareholders for many years to come.”