Royalty Pharma says ready to move quickly on Elan offer

March 6 (Reuters) - U.S. investment firm Royalty Pharma

stood by its offer on Wednesday to acquire Irish drugmaker Elan , which has rejected the approach, saying it was ready to move quickly and that it could complete due diligence in 20 days.

It also said it was meeting with Elan shareholders.

Royalty Pharma made a $6.6 billion approach last week after Elan announced last month a $3.2 billion plan to sell its 50 percent stake in multiple sclerosis drug Tysabri to its U.S. partner Biogen Idec .

Elan rejected Royalty Pharma and on Monday sweetened its offer to shareholders, saying that it would give them 20 percent of future royalties from the drug. It had already planned to return $1 billion to shareholders after the drug sale.

(Reporting By Caroline Humer; Editing by Maureen Bavdek)

((caroline.humer@thomsonreuters.com)(+1 646 223 6181)(Reuters Messaging: caroline.humer.reuters.com@reuters.net))

Keywords: ROYALTYPHARMA ELAN/

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INTERVIEW-Elan says investors unmoved by Royalty Pharma offer

DUBLIN, March 4 (Reuters) - The vast majority of investors at Elan do not view a $6.6 billion approach by U.S. investment firm Royalty Pharma as worthy of discussion, the Irish drugmaker's chief executive said.

Elan announced on Monday that it would give shareholders 20 percent of the royalty rights for multiple sclerosis drug Tysabri and Elan Chief Executive Kelly Martin told Reuters that this was not a response to Royalty's approach last week.

"We simply don't view the Royalty indication of interest as credible. The vast majority of our investor base simply don't view Royalty's indication as worthy of any discussion period," Martin told Reuters in a telephone interview.

"I wish Royalty well, they can do what they need to do but we're not in any discussions with them at all on any topic and we don't see any need to have those discussions."

(Reporting by Padraic Halpin; Editing by Anthony Barker)

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UPDATE 1-Elan offers Tysabri dividend after Royalty approach

(Writes through)

* Elan offers "unique" dividend on top of share buyback

Royalty Pharma made $6.6 bln approach last week

By Padraic Halpin

DUBLIN, March 4 (Reuters) - Irish drugmaker Elan said it will give shareholders 20 percent of the royalty rights for multiple sclerosis drug Tysabri in a bid to stave off an approach for the company by U.S. investment firm Royalty Pharma .

New York-based Royalty made its $6.6 billion approach last week, just two weeks after Elan announced it had sold its 50 percent interest in Tysabri for $3.25 billion plus future royalty payments to U.S. partner Biogen Idec.

Elan said on Monday that the "unique" cash dividend policy would give shareholders the right to enjoy unlimited participation in the upside from Tysabri sales and comes on top of its decision to return $1 billion to shareholders.

(Reporting by Padraic Halpin; Editing by David Holmes)

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Royalty Pharma to go to Elan shareholders with $6.6 bln offer -source

* Royalty has not received response from Elan

* Biggest shareholder is Johnson & Johnson

NEW YORK, Feb 26 (Reuters) - New York-based investment firm Royalty Pharma does not want to take "no" for an answer to its $6.6 billion offer for Irish drugmaker Elan Corp.

The company plans to spend the next few weeks calling Elan shareholders about its offer that was made Feb. 18, according to a source familiar with the situation.

Royalty Pharma, which buys royalty streams of patented drugs and whose portfolio includes rheumatoid arthritis drugs Humira and Remicade, is turning to Elan's investors, because it has not gotten a formal response from the company about its offer, said the source, who wished to remain anonymous because they are not allowed to speak to the press.

Elan's biggest shareholder is Johnson & Johnson with an 18 percent stake.

An Elan spokesman declined to comment beyond Monday's statement. Johnson & Johnson declined to comment.

Royalty Pharma's offer, which was worth $11 per Elan share, came just days after Elan announced it had sold its 50 percent interest in multiple sclerosis drug Tysabri for $3.25 billion plus future royalty payments to U.S. partner Biogen Idec, and then reinvent itself.

As a result of the Tysabri sale, Elan announced Friday that it would return $1 billion to shareholders and make acquisitions with the rest of the $3.25 billion raised from the deal . Elan did not disclose the Royalty Pharma offer, which was indicative, and not a formal bid.

Elan, in a statement Monday, said Royalty Pharma's bid was "indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share capital of the Company."

Elan also called the Royalty Pharma bid "highly opportunistic," given that shareholders had not had the opportunity to assess the full benefits of the Tysabri sale.

However, Royalty Pharma does not think that Elan's management had the experience to make acquisitions, the firm said in its statement announcing its proposed offer Monday.

In afternoon trading, Elan's stock was trading above the offer price at $11.03, a 7 percent increase from Friday's close on the New York Stock Exchange.

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