Royalty Pharma has let its takeover bid for Irish drugmaker Elan lapse as it decided against pressing ahead with a court challenge of a requirement that it withdraw the offer.
Royalty offered earlier this month to pay $13 per share for each Elan share plus up to $2.50 per share in payments based on performance milestones.
An Irish Takeover Panel required Royalty to withdraw that offer if Elan's shareholders approved a stock buyback, which they did in a vote announced Monday. New York-based Royalty had said it would challenge the takeover panel's requirement in court, but it now says it is withdrawing its judicial review request.
Elan is exploring a sale of the company, and it has said Royalty can participate in its formal sale process.
Elan's shares rose 19 cents to $13.70 in premarket trading.