Elan, J&J alliance Has Tysabri Option

Johnson & Johnson's $1.5 billion deal with Elan, it turns out, includes more than just Elan's Alzheimer's program (C&EN, July 13, page 8). Terms also touch on Tysabri, a multiple sclerosis drug developed by Elan and Biogen Idec that had about $500 million in first-half 2009 sales. Under a 2001 contract, Biogen and Elan have the right to buy out the other's Tysabri share if ownership changes at either firm. In last week's second-quarter earnings conference call, Elan revealed that it has given J&J the option to finance the purchase of Biogen's half, if the opportunity arises, and then own the drug equally with Elan. Before the J&J deal, debt-ridden Elan seemed unlikely to acquire Tysabri, a move that would reduce the value of Biogen to potential buyers.—AMT