Elan has withdrawn its US lawsuit against Royalty Pharma over the amount of information provided in relation to its bid for the Irish biotech firm.
Elan said it dropped the action after Royalty provided “significant amounts of additional information” on its bid to the US Securities and Exchange Commission.
Last week a New York court temporarily restrained Royalty Pharma from proceeding with its hostile bid for the company after Elan argued its disclosures were “materially inadequate”.
The company had argued that the bid denied its shareholders the opportunity to properly evaluate Royalty’s offer, however it has now withdrawn the action after more information was provided.
Yesterday, Elan's board of directors unanimously rejected Royalty Pharma revised offer for the company.
Royalty had raised its offer to buy Elan to $6.7 billion, the second increase in its attempt to take over the firm.
The cash offer, at $13 per American depositary receipt, is $0.50 higher than a previous bid and compares to the $13.44 closing price on 7 June.
However the board said the bid continued to undervalue Elan and its assets.
The company holds an Extraordinary General Meeting on 17 June where it will seek shareholder approval for a number of acquisitions.
