Elan restructures Tysabri deal
Elan, which today announced a net loss from continuing operations before tax of $733.2, has also said it is restructuring its multiple sclerosis drug Tysabri deal with Biogen Idec.
Under the terms of the new deal, Biogen will fully own and control of the drug. Elan will move from the current 50:50 split to an upfront cash payment of $3.25bn and a tiered royalty structure for the drug.
Elan has comarketed the drug with Biogen for 12 years.
Elan is to receive a royalty of 12% of Tysabri global net sales for the first 12 months, with a tiered royalty structure after that under which Elan will receive 18% on up to $2bn of global net sales and 25% on any sales over that amount.
Sales of Tysabri, which provides Elan with almost all of its revenue, rose 8% to $1.6bn last year. The number of patients taking the drug rose by 12%.
Elan’s CEO, Kelly Martin said: "Upon close, this highly unique platform provides us with the financial resources to create an enterprise that will diversify its assets, generate future income, maintain specific science and clinical translational capabilities, and leverage the financial and business structure from being a 40-year Irish plc."
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