Royalty is offering $12.50 per share for Elan plus another $2.50 per share contingent on the multiple sclerosis drug Tysabri hitting certain sales targets. However, Royalty's tender offer was forced to lapse because Elan shareholders voted to approve one of four proposals made by company management.
Royalty has petitioned the Irish courts to allow its tender offer to remain valid despite the vote of Elan shareholders. A hearing on the issue is scheduled for Wednesday.On Friday, Elan put itself up for sale, acknowledging that shareholders were going to reject its proposals for restructuring the company. A rival bidder for Elan seems unlikely. Any other company outside of Royalty Pharma interested in acquiring Elan would have stepped up by now. Elan shares closed Friday at $13.66. -- Reported by Adam Feuerstein in Boston. Follow Adam Feuerstein on Twitter.