Elan has agreed to form a joint venture with Colorado-based Ribozyme Pharmaceuticals to bring to market an anticancer agent and a system to inject it into the body.

Ribozyme said it may fund its share of the development costs of the joint venture through the sale of preferred stock to Elan.

Meanwhile, Ligand Pharmaceuticals will pay Elan $5 million (€4.9 million) in Ligand shares for the completion of patient enrolment in Phase III studies of Morphelan, an oral dosage form of morphine.

Morphelan, which is used to treat pain in cancer and HIV patients, is licensed exclusively to Ligand in the US and Canada in exchange for certain up-front license fees and milestone payments to Elan upon the occurrence of certain events.

After the share issue, Elan and its affiliates will own about 5.7 per cent of Ligand's shares or 16.6 per cent on a fully diluted basis.