NEW YORK, June 10, 2013 /PRNewswire/ -- Royalty Pharma today posted a new investor presentation summarizing its Further Increased Offer for Elan Corporation, plc (NYSE: ELN) and urging Elan shareholders to VOTE AGAINST ALL FOUR of Elan's proposals at its upcoming Extraordinary General Meeting on June 17, 2013. A copy of the new investor presentation is available at www.royaltypharma.com.
ADS holders who hold in street name must vote by Wednesday June 12 at 11:59 p.m. New York time.
Ordinary share owners have until 10:00 a.m. Irish Time on Saturday June 15 to vote by proxy through Computeshare, Elan's transfer agent.
The Further Increased Offer represents compelling, immediate value in the form of $13.00 in cash, plus continued upside participation through a contingent value right (CVR) worth up to $2.50 per share, potentially valuing each Elan share at up to $15.50.Royalty Pharma reiterated its view of the Elan transactions:
- Theravance: Elan overpaid by approximately $300-500m and the subset of Theravance royalties Elan agreed to buy are at a real risk of being cannibalized by other Theravance products that did not get included in the deal
- AOP: Unjustifiable valuation at 17x EBITDA and 4.5x current revenue, extremely high multiples for what is essentially a drug distribution business
- Speranza: disguised write-off vehicle for ELND-005, a failed drug that Elan has inexplicably been pushing forward, spending $143m on it through 2012
- Share Buyback: As Glass-Lewis report says, the proposed share repurchase "lacks financial justification". Solely proposed to fend off Royalty Pharma