Elan Corporation has invested £4 million sterling (£4.4 million) for a 2 per cent stake in Bioglan Pharma, the British pharmaceutical group which is being floated on the London stock market next week. As well as the equity investment, Elan is to pay Bioglan an upfront payment of £7 million sterling as part of a collaboration agreement involving Bioglan's drug delivery technology.

Bioglan, which is based in Britain, but has a generic pharmaceutical business in the Republic, has raised £20 million in a placing of 8.2 million shares at 245p sterling each. At the placing price, Bioglan has a market capitalisation of £193 million sterling.