Elan nets $3.25bn for Tysabri
07.02.2013 - US biotech Biogen Idec has bagged full rights to Elan's Multiple Sclerosis blockbuster Tysabri in a US$3.25bn deal.
The news came following rumours that Biogen Idec plans to take over the Irish drugmaker, after its Alzheimer antibody bapineuzumab failed in a Phase III study. Biogen instead decided to take full ownership of the currently most effective therapy for the relapsing form of multiple sclerosis (MS) for US$3.25bn. Under the terms of the agreement, Elan will receive 12% of global net sales for the first year after the deal is completed. After that, Elan will receive 18% on up to US$2bn of global net sales and 25% on any sales over that amount. Last year Tysabri made US$1.6bn (+8%) but an MAA as first line treatment filed last month is expected to further boost sales. "The restructuring of this business collaboration provides Elan with significant strategic flexibility," said the company's CEO Kelly Martin.
With the deal, Biogen Idec strengthens its MS drug portfolio after having co-marketed the antibody Tysabri with Elan since 2004. The US company filed for US approval of its oral dimethyl-fumarate BG-12 (Tecfidera) last year. Biogen could then offer the Interferon beta-1a Avonex alongside with BG-12 and Tysabri strenghtening the company's position in the lucrative MS market against Novartis, Teva, Merck KGaA and Bayer.