Johnson & Johnson, Elan In $1.5 Billion Alzheimer's Pact
July 02 2009 - 9:02AM
Dow Jones News
Drug makers Johnson & Johnson (JNJ) and Elan Corp. PLC
(ELN.DB) Thursday said they will form a new company to push forward
development of Elan and Wyeth's (WYE) Alzheimer's immunotherapy
program.
Johnson & Johnson said it will invest $1 billion in Elan in
exchange for an 18.4% stake in the Irish drug maker.
Elan will also get a 49.9% interest in a new Johnson &
Johnson company formed around the Alzheimer's immunotherapy
program, or AIP.
Johnson & Johnson in a statement said the new company will
assume development of bapineuzumab, an experimental drug being
developed for Alzheimer's, alongside Elan's partner Wyeth. Johnson
& Johnson said it will invest $500 million in the drug's
development.
Under the terms of the deal, Elan will be entitled to 49.9% of
the profits from sales of bapineuzumab and other drugs developed
under the AIP program.
Elan's shares jumped after the news, and at 1214 GMT stood 29%
higher on the day at EUR6.15 in a higher Dublin market.
In January, Elan announced a strategic review.
Company Web site: www.jnj.com; www.elan.com
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;
jason.douglas@dowjones.com