Elan CFO: Deal With J&J To Finance Potential 50% Tysabri Buy
July 21 2009 - 8:32AM
Dow Jones News
Irish drug company Elan Corp. PLC (ELN) has an arrangement
whereby its U.S. strategic partner Johnson & Johnson (JNJ) will
help Elan finance the purchase of another 50% stake in multiple
sclerosis drug Tysabri - but only if that opportunity arises, Chief
Financial Officer Shane Cooke said Tuesday.
Elan and U.S. firm Biogen Idec (BIIB) are joint venture partners
on Tysabri, whose annual revenue is fast reaching the $1 billion
mark, according to Elan. If there is a change of ownership in
Biogen Idec, then Elan has the option to buy the other 50% of
Tysabri, or to sell its 50% stake in the MS drug.
In a separate $1.5 billion deal recently announced between Elan
and Johnson & Johnson, J&J will acquire the assets and
rights of Elan's Alzheimer's program co-partnered with U.S. firm
Wyeth (WYE) and invest $1 billion in Elan in exchange for new
American Depositary Receipts of the Irish firm, representing 18.4%
of its outstanding ordinary shares. Elan will retain a 49.9%
interest in the new Johnson & Johnson subsidiary holding those
assets.
Johnson & Johnson will assume and continue Elan's 50-50
joint venture Alzheimer's program with Wyeth, and will initially
commit up to $500 million toward the development and launch of
Alzheimer's treatment bapineuzumab, or AAB-001.
Company Web site: www.elan.com
-By Quentin Fottrell, Dow Jones Newswires; +353-1-6762189;
quentin.fottrell@dowjones.com