Biopharmaceutical company Theravance (NASDAQ: THRX ) failed to get the shareholders of biotech company Elan (UNKNOWN: ELN.DL2 ) to approve of the two companies participating in a royalty transaction, Theravance announced today, and therefore Theravance will continue with its plans to split into two separate publicly traded companies.
Elan shareholders voted against the proposal at a special meeting in Dublin, Ireland. Theravance says it will continue to split into Theravance Biopharma, which will focus on developing medicines, and Royalty Management Co., which will manage the potential royalties produced from LABA chronic obstructive pulmonary disease and asthma treatments developed with GlaxoSmithKline.
Despite its shareholders voting against partnering with Theravance, Elan's board of directors is actively seeking a buyer. Late last week, the board voted to invite a formal bid from Royalty Pharma, a company that has been engaged in attempting a hostile takeover of Elan for the last four months. Elan had previously rejected Royalty Pharma's $6.7 billion bid.