Biogen buying Elan's Tysabri stake
Biogen Idec Inc. (NASDAQ:BIIB) will pay Elan Corp. plc (NYSE:ELN) $3.3 billion in cash up front to acquire full rights and IP for multiple sclerosis (MS) drug Tysabri natalizumab. Elan will be eligible for 12% royalties on worldwide Tysabri sales for the first 12 months, after which Elan is eligible for 18% royalties on sales up to $2 billion and 25% royalties on sales over $2 billion. Tysabri had $1.6 billion in 2012 global net sales and the partners currently split Tysabri worldwide profits 50/50.
The boards of both companies have approved the deal, which is slated to close in 2Q13. Citi and Ondra Partners are advising Elan. Centerview Partners is advising Biogen Idec. Biogen Idec was up $3.62 to $160.98 on Wednesday. Elan was off $1.06 to $9.40. ...