Replies to post #157363 on Biotech Values

[ghmm]

ELN:

I don't follow them closely enough to take a position. I'm sure Royalty Pharma only cares about the Tysabri royalty so if the other parts have liquidation value could divide up the company.

[masterlongevity]

what parts? all they have is the cash and the tysabri royalty. There is nothing else except inept mgmt that is ridiculously paid and bloated SG and A spending. they have started 3 ph 2 trials for ELND005 in indications of which therir is no clear rationale for the MOA. those are just throwing away money.

ELND005 was heavily heavily shopped for 2 yrs with no takers.

Bapi is dead and ACC has a very very low chance of success.

I think this is a good offer.

[DewDiligence]

ELN—All that is lacking is another suitor and an objective sum of the parts analysis.

Pharma companies per se do not generally acquire firms for their royalty streams. Thus, a better offer would have to come from a firm similar to Royalty Pharma. Possible, but not likely, IMO.

[DewDiligence]

ELN offers shareholders alternative to deal with Royalty Pharma:

http://finance.yahoo.com/news/elan-announces-further-unlocking-value-060000246.html

The Board of Elan Corporation, plc has approved the decision to initiate a unique cash dividend policy enabling its shareholders to benefit directly from the long term cash flow generated by Tysabri.

The dividend program will be directly linked to Tysabri market performance calculated as a percentage of the Tysabri royalty paid to Elan from Biogen Idec as a result of the recently announced Tysabri restructuring. The initial percentage to be paid out directly to shareholders is 20% of those royalties. There is no cap to the dividend cash payments that will be generated…

Investors’ response to this proposal was lukewarm: ELN closed +3%.