NOTE: Avanir Pharma (AVNR) is also mentioned below!!
RBC comments on Elan; says company acquiring assets is most likely scenario
Wednesday, February 13, 2013 12:39:55 PM (GMT)
The firm considers a number of scenarios for ELN including: getting purchased by royalty firm, being bought by larger company for NOLs and low tax structure, PE firm taking it private, reverse merger with IPO-incumbent, and activists arguing for management change.
However, RBC thinks the most likely scenario is ELN buying assets that could potentially include QCOR, ACOR, and AVNR. The firm thinks $3.5-$4B in acquisitions could support a $850M+ top-line and reduce operating costs by 50%.
RBC notes that a recent 20-F filing confirms CEO Kelly Martin's contract was extended "indefinitely" and believes his administration will likely search for acquisitions