Irish biopharma group Elan has closed a deal to transfer ownership of its multiple sclerosis drug Tysabri to US partner Biogen Idec in return for a $3.25 billion cash payment.
As part of the deal, Elan will also receive double-digit royalties on future sales of the drug, getting 12 per cent royalties for the first 12 months and roya;ties of between 18 per cent and 25 per cent thereafter.
Tysabri generated sales of around $1.6 billion last year and some analysts predict that the figure could reach $3 billion by 2016.
Elan has already spun off its drug-discovery business as a US-listed entity, Prothena, and sold its Athlone-based drug technologies manufacturing business to US group Alkermes for over $950 million.
But the copany has come under pressure in recent weeks as it tries to fight off an offer from Royalty Pharma.
Elan rebuffed the proposal in February to buy the company for $6.5 billion (€5 billion) as “highly opportunistic” and “heavily conditional”, but last month Royalty Pharma said it was taking it offer directly to shareholders, meeting key investors in the company.
