Biogen Idec to pay Elan Corp $3.25 bn plus for full rights of multiple sclerosis drug Tysabri

Biogen Idec, a global leader in innovative therapies today said that it would take full ownership of blockbuster multiple sclerosis (MS) drug Tysabri by paying Irish drug maker Elan Corp $3.25 billion plus future royalties on sales of the drug.

Dublin-based Elan, which has co-marketed the drug with Biogen for 12 years, will receive a royalty of 12 per cent of Tysabri's global net sales for the first 12 months after the deal closes, and then receive 18 per cent on up to $2 billion of global net sales and 25 per cent on any sales over that amount.

Elan's CEO, Kelly Martin, said, ''This transaction enables Elan and its shareholders to realise, upon close, a meaningful percentage of the current value of Tysabri while maintaining long term cash flow realisation through the multi-tiered royalty structure of the complete asset."

The restructuring of this business collaboration provides Elan with significant strategic flexibility.

Martin said, "Future actions will be guided by our consistent and multi-year approach of dynamic risk / reward assessment of business opportunities. We are enthusiastic about the market opportunities around the globe and remain flexible and creative about the manner in which we would participate in those opportunities.

''Upon closing, this highly unique platform provides us with the financial resources to create an enterprise that will diversify its assets, generate future income, maintain specific science and clinical translational capabilities, and leverage the financial and business structure from being a 40-year Irish plc.''