Elan this week acquired Vienna, Austria-based AOP Orphan Pharmaceuticals and 48% of Newbridge Pharmaceuticals, which is headquartered in Dubai.
Under the terms of the first deal, Elan will pay €263.5 million ($340 million) for full ownership of AOP, comprised of €175.7 million ($227 million) in cash and €87.8 million ($113 million) of Elan ordinary shares. Additionally, the firm will make potential cash milestone payments of up to €270 million ($348.6 million) on the advancement of certain late stage clinical programs, it said.
As for the second, Elan will pay Newbridge $40 million in exchange for 48% of the total fully diluted capitalization of the company. Further, Elan has the option to purchase the remaining stake in Newbridge by 2015 for a sum of $244 million, and added two members to its target’s board of directors.
“Upon shareholder approval, the totality of these strategically driven decisions, in addition to the Theravance royalty participation agreement and dividend pass through announced last week and the previously completed Tysabri transaction, will form a dynamic and unique business foundation for Elan in the years ahead,” the company said in a statement.
