On March 8, 2002, Drug Royalty Corporation Inc. and Inwest Investments Ltd. announced the entering of a support agreement pursuant to which a subsidiary of Inwest will make a competing takeover bid for all Drug Royalty shares for $3.05 cash per share. The takeover bid values Drug Royalty at $133 million. Drug Royalty is a Canadian company specializing in investing in the global healthcare market by acquiring royalty streams from participants in the healthcare sector. Inwest is a private holding company with substantial real estate assets in Canada and the U.S. Drug Royalty’s board of directors also announced that it was withdrawing its recommendation in favour of an earlier bid by Cambridge Antibody Technology Group.
Drug Royalty was represented by Richard Steinberg, Scott Conover, Greg Ho Yuen, Janice Javier and Alex Branis (corporate), Elizabeth Johnston (tax) and Angela Di Padova (competition) of Fasken Martineau DuMoulin LLP in Toronto. Inwest was represented by Graham Gow, Jasprit Gill and Ian Michael (corporate), Danielle Bush and Deborah Creamer (IP) and Jillian Welch and Steven Baum (tax) of McCarthy Tétrault LLP. Robert Nicholls of Stikeman Elliott represented the special committee of the board of directors of Drug Royalty.