Biogen buys Tysabri from Elan for $3.25bn


US biotech Biogen Idec is to pay $3.25 billion (£2 billion) to Irish drugmaker Elan for full rights to Tysabri (natalizumab) injections for the treatment of multiple sclerosis (MS).

The drug is currently marketed jointly by the two companies, with profits split evenly. It generated $1.6 billion in sales in 2012, up 8% compared with 2011, and accounted for almost all the sales at Elan.

Under the terms, Biogen Idec will pay $3.25 billion up front in order to take full ownership of the blockbuster drug and agree to make future payments linked to sales.

The deal ‘provides for a meaningful de-risking of the business’, said Elan chief executive Kelly Martin. ‘As we move through 2013 and beyond, the close of the Tysabri transaction gives us strategic flexibility to add to the shareholder value proposition and investment thesis by enabling continued prudent and risk justified investment in our pipeline, selectively adding commercial and clinical assets, and exploring the return of capital to shareholders at the appropriate time and in the right manner.’


Related Content

Talk of a $6.6bn deal for Elan

27 February 2013 Business

news image

Potential offer from Royalty Pharma comes as Elan ponders how to spend its cash from Tysabri rights

Perrigo bags Elan and its bargain Irish tax rates

31 July 2013 Business

news image

$8.6bn deal ends Elan’s takeover battle with Royalty Pharma

Most Read

Graphene sandwich turns water square

27 March 2015 Research

news image

Water trapped between graphene sheets transformed into new type of ice

Simple cooking changes make healthier rice

23 March 2015 Research

news image

Adding oil to water, cooling and reheating rice makes fibre-like resistant starch, reducing calories

Most Commented

Sewage offers attractive source of precious metals

27 March 2015 Research

news image

US Geological Survey team finds valuable metals in treated sewage and is working on the difficult problem of extraction

Thinking ahead

26 March 2015 Critical Point

news image

PhD courses must prepare students for a life after research, says Mark Peplow