Elan Makes A $1 Billion Theravance Royalty Play; What Will Investors Say?

The Irish company, fighting a takeover offer from Royalty Pharma, has made the first of several planned deals: Elan will pay $1 billion to Theravance in exchange for a 21% interest in future royalty payments from four respiratory programs partnered with GlaxoSmithKline. Theravance shares soared on the news.