UPDATE: Jefferies Downgrades Elan Corporation plc to Hold, Lowers PT Following Perrigo Sale Agreement

In a report published Tuesday, Jefferies analyst Oren G. Livnat downgraded the rating on Elan Corporation plc ELN from Buy to Hold, and lowered the price target from $19.00 to $16.50. In the report, Jefferies noted, “ELN agreed to be acquired by Perrigo for ~$8.6B or $16.50/shr (based on prior PRGO stock price), a >40% premium to where ELN was following Bapi Ph.3 failure, and >25% above the last Royalty Pharma hostile bid. Given the open/formal sales process, we do not see higher bids now and expect ELN shareholder approval and close by end'13. Downgrade to Hold.” Elan Corporation closed on Monday at $15.50.