Jack Schuler, a senior US pharmaceutical industry executive who is a former
board member at Elan, in a letter to The Financial Times today, has questioned the
experience and competence of the company’s management and claimed its recent proposed
investment transactions were “value destructive.”
Elan, the former Irish drugs company, has been reduced to a shell operation
and is resisting a takeover bid, from Royalty Pharma, another drugs investment
firm, that is based in the US.
Jack Schuler says
in his FT letter:
"The series of acquisition transactions that Elan has undertaken in the last
month appear to be an attempt to frustrate Royalty Pharma from being able to
succeed with their offer. The transactions are clearly value destructive and not
in the best interest of Elan or its shareholders. The transactions were done in
haste and I doubt whether there was much board analysis or consideration. In my
view, Elan’s board and management has very limited experience in doing deals and
I believe is not competent to run a business.
I have no confidence that Kelly Martin or the other Elan board members will
act in the interests of shareholders. I hope the Elan shareholders realise that
their only option is to sell the company to the highest bidder."
Finfacts: Elan: Most valuable Irish firm becomes cash/ royalty shell
Royalty Pharma on Tuesday
charged Elan with misleading shareholders over voting procedures on
its $6.7bn hostile bid for the company, ahead of a deadline on today to approve
a series of investments agreed by Elan to thwart the bid.
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