Irish drug company Elan Corp. (Dublin) has announced that it is buying biopharmaceutical company Liposome (Princeton, NJ) in a $575 million stock swap. Liposome, which will operate as a wholly-owned subsidiary, is focused on liposomal formulations for improved delivery of drugs, particularly therapeutics for cancer and related conditions, and the merger marks Elan's attempt to move into the oncology market. Elan is currently developing products in neurology, pain management, and advance drug-delivery systems. Donal Geaney, Elan's chair and CEO, says Liposome was attractive because of its experienced sales force, manufacturing capability, pipeline—which includes lipid derivatives of anticancer drug paclitaxel—and Abelcet, a lipid-based formulation of amphotericin B for treatment of systemic fungal infections—a profitable product already on the market. Last September, the US Food and Drug Administration rejected Liposome's request for a New Drug Application for Evacet, its liposomal formulation of doxorubicin for treatment of metastatic breast cancer, causing the company's share price to fall nearly 50% to $8.44. Elan says it may make an additional payment of up to $98 million to Liposome shareholders if Evacet is approved for marketing in the European Union.