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Monday, March 4, 2013

Elan offers special dividend to fend off Royalty, (NASDAQ: BIIB)

Irish drugmaker Elan has sweetened the terms on offer to shareholders under a $3.25 billion disposal plan to try to stave off an approach for the company from U.S. investment firm Royalty Pharma.Elan said on Monday it would give shareholders 20 percent of future royalties from multiple sclerosis drug Tysabri, in which it holds a 50 percent interest that it plans to sell to its U.S. partner Biogen Idec.The Irish group had unveiled the restructuring a month ago, saying it would gain flexibility to purchase new assets. It has already said it would also return $1 billion to shareholders.Those plans were put under question when New York-based Royalty made its $6.6 billion approach last week.

Biogen Idec Inc. (Biogen Idec) is a global biotechnology company. Shares of BIIB fell by 1.3% or $-2.2/share to $166.50. In the past year, the shares have traded as low as $116.30 and as high as $171.11. On average, 1356830 shares of BIIB exchange hands on a given day and today's volume is recorded at 570481.