Elan sweetens shareholder offer

Elan has sweetened the terms on offer to shareholders under its $3.25bn (€2.5bn) disposal plan, as it aims to stave off an approach for the company from US investment firm Royalty Pharma.

Elan said yesterday it would give shareholders 20% of future royalties from multiple sclerosis drug Tysabri, in which it holds a 50% interest that it proposes selling to its US partner Biogen Idec.

Elan unveiled the restructuring a month ago, saying it would gain strategic flexibility to buy new assets. It already said it would return $1bn to shareholders. Those plans were put under question when New York-based Royalty made its $6.6bn (€5.08bn) approach last week, but Elan said most of its shareholders did not view the idea as worth consideration.