Elan , the pharmaceutical group, has licensed exclusive North American sales and distribution rights for frovatriptan, an anti-migraine therapy drug manufactured by the England-based Vanguard Medica Group, in a deal worth about $60 million.

Elan will invest $10 million in new ordinary Vanguard shares at £6.25 per share, equating to about 3 per cent of Vanguard's current issued share capital. Payments of up to $50 million in royalties on future sales of the drug have also been written into the agreement. "Today's announcement is in line with our strategy of enhancing our position in the therapeutic areas of neurology and pain management where we are developing a leading presence," Mr Donal Geaney, Elan chief executive said.