Biotech Values

[DewDiligence]

ELN offers shareholders alternative to deal with Royalty Pharma:

http://finance.yahoo.com/news/elan-announces-further-unlocking-value-060000246.html

The Board of Elan Corporation, plc has approved the decision to initiate a unique cash dividend policy enabling its shareholders to benefit directly from the long term cash flow generated by Tysabri.

The dividend program will be directly linked to Tysabri market performance calculated as a percentage of the Tysabri royalty paid to Elan from Biogen Idec as a result of the recently announced Tysabri restructuring. The initial percentage to be paid out directly to shareholders is 20% of those royalties. There is no cap to the dividend cash payments that will be generated…

Investors’ response to this proposal was lukewarm: ELN closed +3%.