News Summary: Elan enters $1B deal with Theravance

News Summary: Elan enters $1 billion royalty deal with Theravance over potential drug sales

Associated Press

ROYALTY DEAL: Irish drugmaker Elan Corp. PLC said Monday it plans to pay $1 billion for the right to future royalties from four respiratory treatments being developed by Theravance Inc. and GlaxoSmithKline.

THE DETAILS: The deal gives Elan 21 percent of the future royalties that South San Francisco, Calif.-based Theravance receives from Glaxo, a British drugmaker. The companies expect to close the royalty agreement at the end of June if Elan shareholders approve it.

SHAREHOLDER GAIN: Elan also said it plans to pay its shareholders a cash dividend with 20 percent of the sales it receives from this agreement.

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