Creating a post-Tysabri story

While last week's deal with Protein Design Labs Inc. clearly marks a first move by Biogen Idec Inc. to rebuild its story following the Tysabri blow-up, investors say the collaboration would be viewed as a good deal even if the multiple sclerosis drug were still on the market.

BIIB paid $40 million up front and purchased $100 million in PDLI stock in exchange for rights to co-develop and co-commercialize three PDLI antibodies: daclizumab humanized anti-CD25 antibody, which is in Phase II testing for MS; volociximab (M200) anti-integrin alpha(5)beta(1) antibody, which is in Phase II studies for renal cell carcinoma (RCC), melanoma and pancreatic cancer; and HuZAF fontolizumab humanized anti-interferon gamma antibody, which is in Phase II trials for Crohn's disease. PDLI is eligible for up to $660 million in milestones, and the partners will split costs and profits (see B2). ...