Biogen to pay Elan $3.25B, royalties for Tysabri
Tel Aviv (MarketWatch) — Biogen Idec Inc. will buy out Elan Corp., its 50-50 partner in a collaboration on the multiple-sclerosis drug Tysabri, Elan said on Wednesday. Terms call for Biogen Idec, the Weston, Mass., drugmaker, to pay Elan .25 billion up front and then enter into a royalty agreement, Elan said. After the deal, Biogen Idec takes 100% ownership and control of Tysabri, Elan said. Elan, the Dublin drugmaker, called the deal tax efficient. Elan Chief Executive Kelly Martin said it provided shareholders with an immediate return from Tysabri as well as long-term participation in the success of the product through the royalty agreement. And the move reduces risk since Elan can diversify, Martin said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.