Features | Partner Sites | Information | LinkXpress
Sign In
GLOBETECH PUBLISHING
GLOBETECH PUBLISHING
JIB

Drugmaker Perrigo to Buy Irish Elan for USD 8.6 Billion

By BiotechDaily International staff writers
Posted on 05 Aug 2013
Perrigo (Allegan, MI, USA), the largest manufacturer of private label over-the-counter (OTC) pharmaceuticals in the United States, has agreed to buy Elan (Dublin, Ireland).

Perrigo and Elan will be combined under the umbrella of New Perrigo, a company recently incorporated in Ireland. New Perrigo, which is expected to be called Perrigo Company, will be led by Perrigo’s current leadership team, headed by Joseph C. Papa, chairman and CEO of the company. Immediately after the closing of the transaction, Perrigo shareholders are expected to receive approximately 71% of the combined company, while Elan shareholders are expected to own approximately 29%.

The amalgamation of the companies is expected to result in more than USD 150 million of recurring after-tax annual operating expense and tax savings as a result of the combined company being incorporated in Ireland with organizational, operations, and capitalization structures that will enable it to more efficiently manage global cash and treasury operations. Some of these synergies will result from the elimination of redundant public company costs, while optimizing back-office support and the global R&D functions.

However, the major advantage for Perrigo is that the deal will allow it to move corporate headquarters to Ireland, where it will enjoy a low 12.5% corporate tax rate, compared to 35% in the United States. The move will also give Perrigo a gateway to the rest of Europe, as well as generating a healthy income from Elans’ remaining 50% interest in royalties from the sales of multiple sclerosis (MS) drug Tysabri. Elan sold its 50% interest in Tysabri to US partner Biogen Idec (Weston, MA, USA; www.biogenidec.com) in February 2013 for USD 3.25 billion, but retained some royalties in the drug, whose sales rose to USD 1.6 billion in 2012.

“We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan’s assets, including a large cash balance and a double-digit royalty claim on Tysabri,” said Joe Papa. “We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities.”

“The Elan platform has been constructed over the years to provide a unique and compelling investment thesis for our shareholders,” said Kelly Martin, CEO of Elan. “This transaction underscores the tremendous value of Elan's platform. The new combined company should deliver value, growth and diversification to shareholders for many years to come.”

The acquisition ends a prolonged takeover battle during which Elan rejected three lower bids from US investment firm Royalty Pharma amid injunctions, court hearings, and a verbal slinging match before putting itself up for sale in June 2013.


Related Links:

Perrigo
Elan
Biogen Idec




comments powered by Disqus

Channels

Genomics/Proteomics

view channel
Image: Differences in the structure of a small lung artery (top row) and heart cross section (lower row) of rodents without disease (far left column); with pulmonary hypertension (middle) and a diseased rodent treated with the HDL peptide (right). Note the much narrowed lung artery, and thick walls and larger chamber of the heart in the diseased animal and improvements with 4F peptide treatment (Photo courtesy of UCLA - University of California, Los Angeles).

Apolipoprotein A-1 Mimetic Peptide Reverses Pulmonary Hypertension in Rodent Models

A small peptide that mimics the activity of apolipoprotein A-1 (apo A-1), the main protein component of the high density lipoproteins (HDL), counteracted the effects of oxidized lipids and alleviated symptoms... Read more

Drug Discovery

view channel
Image: The five stages of biofilm development: (1) Initial attachment, (2) Irreversible attachment, (3) Maturation I, (4) Maturation II, and (5) Dispersion. Each stage of development in the diagram is paired with a photomicrograph of a developing P. aeruginosa biofilm. All photomicrographs are shown to same scale (Photo courtesy of Wikimedia Commons).

Ionic Liquids Disperse Bacterial Biofilms and Increase Antibiotic Susceptibility

The ionic liquid choline-geranate was shown to effectively eliminate the protective biofilm generated by bacteria such as Salmonella enterica and Pseudomonas aeruginosa and to significantly increase the... Read more

Therapeutics

view channel
Image: Hair follicle (blue) being attacked by T cells (green) (Photo courtesy of Christiano Lab/Columbia University Medical Center).

Hair Restoration Method Clones Patients’ Cells to Grow New Hair Follicles

Researchers have developed of a new hair restoration approach that uses a patient’s cells to grow new hair follicles. In addition, the [US] Food and Drugs Administration (FDA) recently approved a new drug... Read more

Lab Technologies

view channel
Image: Leica Microsystems launches the inverted research microscope platform Leica DMi8 (Photo courtesy of Leica Microsystems).

New Inverted Microscope Designed to Readily Adapt to Changing Research Demands

A new inverted microscope for biotech and other life science laboratories was designed to readily accommodate modifications and upgrades to allow it to keep current with changing research demands and interests.... Read more
 
Copyright © 2000-2014 Globetech Media. All rights reserved.