Pharmaceutical group Elan will invest up to $22 million (€20.6 million) in Emerald Gene Systems, a new company aiming to develop technologies for the delivery of therapeutic genes.

More than 80 per cent of the shares in Emerald will be owned by the US group, Targeted Genetics. Elan has invested an additional $5 million in Targeted Genetics and will buy a further $5 million worth of stock in a year. In addition, Elan has bought $12 million worth of convertible loan stock.

Elan has the option to convert this into equity or swap it for an increased stake in Emerald up to a maximum of 50 per cent. Emerald's initial research and development programme will be focused on the creation of delivery systems.