Royalty Pharma dropped its proposal to acquire Elan Corporation, plc (ADR) (NYSE:ELN) after actively pursuing the Irish drug company to accept its $6.7 billion takeover bid.

Royalty Pharma

Based on its latest statement, Royalty Pharma withdrew is request for a judicial review from the Irish Takeover Panel to proceed with its $6.7 billion tender offer for Elan Corporation, plc (ADR) (NYSE:ELN). Royalty Pharma requested a judicial review after its proposal lapsed when the shareholders of the Irish drug company approved a plan to repurchase shares worth $200 million worth on Monday.

Royalty Pharma’s CEO Statement

Pablo Legorreta, chief executive officer of Royalty Pharma said, “In light of recent developments, we are no longer pursuing the judicial review we had requested. Accordingly, no further revised acceptance documents should be executed and delivered and any acceptance documents in respect of the offer, the increased offer, and further increased offer are now of no legal effect.”

Shareholders Of Elan Received an Advice

On the other hand, Elan Corporation, plc (ADR) (NYSE:ELN) released an advice to its shareholders today to withdraw any acceptances of an offer from Royalty Pharma and emphasized that the tender offer already lapsed.

The Irish drug company stated, “Withdrawal of acceptances of the Royalty Pharma Offer will ensure that Elan shareholders are in a position to participate in the benefits of the formal sale process which has now commenced.” Elan Corporation also stated that its financial advisers contacted the financial advisers of Royalty Pharma to participate in the sale process.

The board of directors of Elan Corporation, plc (ADR) (NYSE:ELN) finally decided to put the company up for sale last week after receiving expressions of interests from different parties. The Irish drug company also invited Royalty Pharma to participate in the process.

Elan Corporation, plc (ADR) (NYSE:ELN) repeatedly rejected unsolicited proposals submitted by Royalty Pharma, citing that the offers were inadequate for its shareholders.

Aside from voting in favor of a shares buyback plan of Elan Corporation, plc (ADR) (NYSE:ELN), the shareholders of the Irish drug company rejected three other transactions: a $1 billion investment in 21 percent of Theravance Inc (NASDAQ:THRX)’s royalties, a $340 million acquisition of AOP Orphan Pharmaceuticals AG, and the sale of an experimental drug for Alzheimer’s disease.

Earlier this month, the board of directors of Elan Corporation, plc (ADR) (NYSE:ELN) encouraged shareholders to vote in favor of all its prospective transactions, and emphasized that the opportunities would improve the company’s profitability, diversify its business, and gain exposure in mid-to-late stage pipeline. On the other hand, Royalty Pharma criticized the price and rationale of Elan Corporation’s investment plans and urged shareholders to vote against it.