Elan sells Tysabri rights to Biogen Idec
DUBLIN - Elan Corp. will sell the rights to its drug for multiple sclerosis to partnering company Biogen Idec for $3.25 billion plus royalties, the Irish drug maker said.
Elan said the sale of rights to Tysabri (natalizumab) to Biogen Idec would include royalties of 12% of global net sales of the drug and, after 12 months, a tiered royalty structure in which Elan would receive 18% on up to $2 billion of net global sales and 25% on sales of more than $2 billion. Meanwhile, Biogen Idec would have full ownership and control of the drug, and the current 50:50 collaboration between the two companies would be terminated.
"This transaction enables Elan and its shareholders to realize, upon close, a meaningful percentage of the current value of Tysabri while maintaining long-term cash flow realization through the multi-tiered royalty structure of the complete asset," Elan CEO Kelly Martin said. "The restructuring of this business collaboration provides Elan with significant strategic flexibility."
Find us on Facebook for more insight, analysis and the latest in drug store news.