In the latest development in Royalty Pharma's attempt to take over Elan, the Irish pharmaceutical firm has urged shareholders to "protect the value of their investment" in Elan by rejecting the putative acquirer's "grossly inadequate offer".

Elan has also called on its shareholders to vote for all four resolutions in connection with its forthcoming egm, to be held on June 17th.

Shareholders are being asked to vote on four resolutions: 1) royalty participation in four potential blockbuster Theravance respiratory programs; 2) the acquisition of AOP Orphan, a pioneer in the high growth field of orphan and rare diseases; 3) the divestiture of its ELND005 asset to an independent company (Speranza Therapeutics), "which will save millions of dollars in development costs annually"; and 4) an additional US$200 million share repurchase program to return even more value directly to shareholders.

Both Elan’s Board and executive management are aligned in exploring all opportunities that maximize the full value of the Company for its shareholders. In response to several unsolicited corporate enquiries, the Company has instructed its advisors to assess any and all strategic interests in the Company that reflect a proper valuation of the totality of Elan’s business platform. As Elan has indicated, any credible proposal - in terms of full and fair value - will be considered by Elan.

Make no mistake. Royalty Pharma is not a pharmaceutical company. Their business model is all about buying assets on the cheap and generating value for their investors. Put another way, if Royalty Pharma and its shareholders win, by definition, YOU LOSE and their shareholders capture value that rightly belongs to you.

Royalty Pharma has said it will walk away from its wholly inadequate offer if Elan’s shareholders support any of the four proposals we have put forward to deliver additional growth and value for you, and is actively campaigning against them. Don’t be fooled by their rhetoric.