The shareholders of Elan have approved a plan for share buyback at a company meeting on Monday.

The approval would mean that the hostile bid launched by Royalty Pharma would lapse unless legally halted. Royalty had launched its takeover bid in the previous month offering but it was dependend upon the shareholders not accepting any of the four resoulutions at the extraordinary general meeting that was held today.

The Irish drug maker said ina statement that the shareholders did not aree to three of the transactions, but approved a share buyback plan. The shareholders votel against the proposed $1bn royalties deal with Theravance , the acquisition of private drug firm AOP Orphan and a drug spin-off. The voting against the plans is a major set back for the management for the revival of the company.

Following the approval for the $200m share buy back, the company would move to acquire its shares in the market.