Elan shares are higher in Dublin trade today after the news that Royalty Pharma had made an indicative proposal to acquire the Dublin-based company.

The private company is offering $11 for each Elan share.

It said it had not received a formal response from the company and had been "unsuccessful in its efforts to engage with Elan" since making its proposal earlier this month.

It said it was ''surprised'' by Elan's stock exchange announcement last week, which discussed the company's standalone strategy but did not address the fact that Elan had received the proposal.

The company said it plans to finance the offer for Elan through both cash and debt.

In a statement this afternoon, Elan said it acknowledged this morning's announcement from Royalty Pharma, saying that the timing of the offer is ''highly opportunistic''.

''Any credible proposal which may be made by Royalty Pharma or any other party will of course be considered by the company,'' the statement added.

Royal Pharma acts as investment manager to entities investing in royalty interests in marketed and late stage pharmaceutical products.

The company said its possible offer represented a cash premium of 12.6% to the current enterprise value of Elan and a cash premium of 6.3% to Elan's closing share price of $10.35 on February 15.

Elan announced earlier this month it would raise more than $3.25 billion by selling its interests in its main drug, multiple sclerosis treatment Tysabri, to US partner Biogen Idec and effectively reinvent itself by spending most of the cash on acquisitions.

However, Royalty Pharma said the risks and lack of earnings visibility associated with this plan were substantial, prompting it to offer Elan shareholders a "simple and clear choice" with an offer it said represented the full value of Elan today.