Elan sells Euro rights to pain drug
Elan has agreed to sell the rights to its Prialt drug for the treatment of chronic pain in Europe to Eisai, while retaining the product rights in the United States.
Under the terms of the agreement, Elan may receive up to $100m (€83.5m) in cash: $50m (€41.7m) on the closing of the transaction, a further $10m (€8.3m) on the earlier of two years from closing or launches of Prialt in key European markets, and an additional $40m (€33.5m) if Prialt achieves revenue-related milestones in Europe.
The closing of the transaction, which is expected to occur in the first quarter of 2006, is subject to the receipt of relevant regulatory authority approvals and other customary closing conditions.
Elan expects to record a gain on closing in excess of $40m (€33.5m).
Elan president and CEO Kelly Martin said: “Prialt is a highly innovative, approved, intrathecal analgesic for patients suffering from severe chronic pain.
“Patient need in this area remains significant given that there have not been any meaningful therapeutic advances in this area for more than two decades. We are delighted that this transaction will enable Eisai to offer this new therapy to patients throughout Europe.”
