Biogen Idec has agreed to purchase Elan’s interest in Tysabri and will gain full commercial rights to the drug. The companies’ previous collaboration agreement, under which Tysabri profits were split 50/50, will be terminated.
Biogen will make a payment of $3.25 billion upon closing and will make future contingent payments equal to 12% of global sales of Tysabri for the first 12 months, and will continue to make payments of 18% on the first $2.0 billion in annual global sales and 25% on annual global sales that exceed $2.0 billion.
“This is a natural next step for Biogen Idec and Tysabri, and it underscores our deep, long-term commitment to improving the lives of MS patients around the world,” said George A. Scangos, Ph.D., chief executive officer of Biogen Idec. “Tysabri is a remarkably efficacious drug, and with the increased awareness of our risk stratification capabilities, we believe MS patients’ use of Tysabri will continue to expand. Full ownership will improve our ability to navigate its role as part of our leadership in MS. We appreciate Elan’s tremendous partnership and the productive approach to our discussions that led to a transaction that benefits the shareholders of both companies.”