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Elan acknowledges Royalty’s proposal

Monday, February 25, 2013

The board of Elan, a biotechnology company based in Ireland, has acknowledged the announcement by Royalty Management regarding an indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share capital of Elan.

In anticipation of executing and closing the recently announced Tysabri transaction, Elan’s board of directors, executive management and advisors have been working for over a year on a number of strategic transactions that, should they be consummated, would be to the benefit of its public shareholders. Returning capital through share repurchase, diversifying business and asset risk/reward through non-traditional business structures while simultaneously capturing the long term high margin royalty income from Tysabri will offer a compelling investment thesis for its current shareholders.

Elan notes the highly opportunistic timing of the announcement by Royalty Pharma, a privately held investment management company, before Elan’s shareholders have had the opportunity to assess and realize the full benefit of the Tysabri transaction and the partial unlocking of its value. The Tysabri transaction is expected to close in the near future.

Elan also notes the heavily conditional nature of this indication of interest. Any credible proposal which may be made by Royalty Pharma or any other party will be considered by the company.

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