Irish pharma giant Elan will be under the spotlight next month as the company seeks shareholder approval for a number of acquisitions including Austrian rare drug specialist AOP Orphan and Dubai-based sales and marketing firm Newbridge pharmaceuticals.
The biotechnology company is also seeking approval at its EGM on June 17th for an additional $200 million share buyback programme, to commence in the near future, bringing to $1.2 billion the amount returned to shareholders this year.
Initiatives
Elan last week announced a number of initiatives to reshape the business. These include the acquisition of a set of royalty flows from Theravance in its respiratory disease portfolio, buying AOP Orphan for €263.5 million and the purchase of a 48 per cent stake in Newbridge pharmaceuticals.
If all transactions are approved, Elan will have spent $3.3 billion cash on a combination of M&A, share buybacks and bond redemptions.
Royalty streams
Elan would thus comprise a series of potential royalty streams, an owned late-stage pipeline in specific orphan drug indications and regional diversity, according to Davy equity analyst Jack Gorman.
In addition, the annual operating expenditure at centre would be reduced by approximately $80 million.
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