Athena, Elan deal

ELN purchased for $6 million the rights to ATHN's Diastat development program held by PaineWebber R&D Partners III L.P. Diastat is a gel formulation of diazepam which treats a severe form of epilepsy called acute repetitive seizures.

Under the purchase, ELN acquires an exclusive license to Diastat in the U.S. ATHN will continue development of the product, for which it has submitted an NDA. Through Feb. 28, 1998, ATHN has an option to repurchase from ELN all rights to the exclusive license for cash or stock, or a combination thereof. A warrant for 500,000 shares of ATHN common, assigned by the limited partnership to ELN, is exercisable only if ATHN does not repurchase the rights to Diastat. The limited partnership will retain a warrant for 500,000 common shares of ATHN, which has 27.3 million shares outstanding. ...