DUBLIN - Elan Corp. will sell the rights to its drug for multiple sclerosis to partnering company Biogen Idec for $3.25 billion plus royalties, the Irish drug maker said.
Elan said the sale of rights to Tysabri (natalizumab) to Biogen Idec would include royalties of 12% of global net sales of the drug and, after 12 months, a tiered royalty structure in which Elan would receive 18% on up to $2 billion of net global sales and 25% on sales of more than $2 billion. Meanwhile, Biogen Idec would have full ownership and control of the drug, and the current 50:50 collaboration between the two companies would be terminated.
"This transaction enables Elan and its shareholders to realize, upon close, a meaningful percentage of the current value of Tysabri while maintaining long-term cash flow realization through the multi-tiered royalty structure of the complete asset," Elan CEO Kelly Martin said. "The restructuring of this business collaboration provides Elan with significant strategic flexibility."
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