BioCentury
ARTICLE | Financial News

Elan financial update

March 11, 2013 7:00 AM UTC

Elan said its board approved a cash dividend policy under which it will pay shareholders a percentage of the royalties the company receives from partner Biogen Idec Inc. (NASDAQ:BIIB, Weston, Mass.) under a restructured deal for multiple sclerosis (MS) drug Tysabri natalizumab. The dividend will be paid to shareholders twice yearly, with the first dividend expected in 4Q13. Shareholders will initially receive a dividend for 20% of the Tysabri royalties.

Last month, the partners said Biogen will pay Elan $3.3 billion in cash to acquire full Tysabri rights and IP. Elan will be eligible for 12% royalties on worldwide Tysabri sales for the first 12 months, after which Elan is eligible for 18% royalties on sales up to $2 billion and 25% royalties on sales over $2 billion. Elan subsequently said it will start a $1 billion share repurchase program with a portion of the upfront payment. Tysabri had $1.6 billion in 2012 global net sales. The deal is slated to close next quarter (see BioCentury, Feb. 11 & Feb. 25). ...