Elan's $1B Royalty Buy Beefs Up Hostile Takeover Defense

Law360, New York (May 13, 2013, 1:58 PM EDT) -- Elan Corp. PLC said Monday that it will pay drugmaker Theravance Inc. $1 billion for the rights to future royalty payments, proving to shareholders it can pull off big deals and beefing up its defense against a looming $5.7 billion hostile bid.

Elan is buying a 21 percent royalty on four respiratory drugs that Theravance is developing in partnership with GlaxoSmithKline PLC. One of the drugs, Breo, received key approvals from the U.S. Food & Drug Administration on Friday and GSK is planning a third-quarter launch....
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