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| Elan CEO Kelly Martin |
Elan ($ELN) has found a way to sweeten the pot for investors who may be tempted to sell their shares to a royalty group offering to cash them out following the $3.25 billion Tysabri deal. The biotech company, which just sold what is effectively its only product, says it will redistribute its royalty stream to investors in special, twice yearly installments. CEO Kelly Martin has been promising to rebuild the company with a deal spree covering approved and experimental therapies. Just days ago Royalty Pharma offered to simply buy the company for $6.55 billion, giving investors a choice between cash and a gamble on Martin's deal-making prowess. Some analysts have been questioning why Elan should be given a shot at rebuilding, particularly at a time most biopharma assets are priced high. Release