Elan set to return $1bn to shareholders after sale of Tysabri stake

Elan is set to return $1bn (€760m) to shareholders — roughly a third of the money it is due to receive from selling its stake in multiple sclerosis drug Tysabri.

Earlier this month, the Dublin-headquartered biotechnology company announced it was selling its 50% stake in the drug to its co-partner, US pharmaceutical firm, Biogen Idec, for an initial $3.25bn and additional future royalty payments.

Yesterday, Elan updated its plans for the total windfall saying it will use it to invest in a number of new assets, pay down debt and — perhaps most notably, at this juncture — launch a $1bn share buyback programme upon completion of the Tysabri deal.