Elan announced that it is to launch a "unique" dividend policy. The company is to pay a disbursement to its shareholders directly from the monies generated by Tysabri, a multiple sclerosis drug it developed and ultimately sold to its partner Biogen.
Elan said the dividend will be a certain percentage of the royalties Biogen pays for Tysabri, and that it expects to make two distributions per year. The first disbursement is to be 20% of the royalty total.
Last year, in-market sales of Tysabri amounted to $1.6 billion.
Elan's announcement comes on the heels of a buyout bid from financial investor Royalty Pharma, which has offered $6.55 billion ($11 per share) for the company.
The article Elan to Start Paying Dividends originally appeared on Fool.com.
Fool contributor Eric Volkman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.