Elan to start dividend linked to Tysabri royalties

Irish drugmaker Elan Corp. says it will start offering a cash dividend linked to the performance of the multiple sclerosis treatment Tysabri.

The Dublin company says it will initially pay shareholders 20 percent of the royalty it receives from marketing partner Biogen Idec for the drug's sales. It plans to start paying the cash dividend twice a year, with the first expected to be paid in the fourth quarter.

Biogen and Elan have split earnings from Tysabri. But the drug developers said last month that Biogen will take over ownership for a cash payment of more than $3 billion and future royalties. The dividend is contingent on that deal closing.

Elan last month dismissed an offer from Royalty Pharma to buy the company for about $6.5 billion.