Elan (NYSE: ELN ) 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.