Elan files suit against Biogen Idec over Tysabri

Elan Corp. plc (NYSE:ELN) filed suit against Biogen Idec Inc. (NASDAQ:BIIB) in the U.S. District Court for the Southern District of New York seeking declaratory and injunctive relief to prevent Biogen Idec from terminating the partners' deal for Tysabri natalizumab. Elan filed the suit after Biogen Idec sent a letter to Elan in July alleging that Elan had breached its agreement with Biogen Idec by granting Johnson & Johnson (NYSE:JNJ) an option to finance Elan's purchase of Biogen Idec's 50% interest in Tysabri if Biogen Idec is acquired. The letter triggered a 60-day period ending Sept. 26, after which Biogen Idec may seek to terminate the Tysabri deal.

Biogen Idec claimed that Elan assigned rights to Tysabri without Biogen Idec's consent, which Elan denies. Elan said Biogen Idec's threat to terminate is interfering with the close of Elan's deal with J&J (See BioCentury, July 06, 2009). ...