Elan, the Irish pharmaceuticals group, looks set to buy Quadrant Healthcare, the UK drug-delivery company, after Inhale, the rival US bidder, withdrew from the fray. Inhale's withdrawal could re-open a patent dispute between the US group and Quadrant.

Inhale, which had offered 60p a share, said it would not trump Elan's 75p a share offer. Elan's offer valued Quadrant at £52.3 million (€66.45 million).