Theravance Will Split Into 2 Companies After Losing Elan Bid

Biopharmaceutical company Theravance (UNKNOWN: THRX.DL  ) 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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2493501, ~/Articles/ArticleHandler.aspx, 9/30/2016 8:08:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ELN.DL2 $0.00 Down +0.00 +0.00%
Elan CAPS Rating: ***
THRX.DL $0.00 Down +0.00 +0.00%
Theravance CAPS Rating: **
GSK $42.90 Down -0.77 -1.76%
GlaxoSmithKline CAPS Rating: ***