Elan Prepares For A Buying Spree Now That Biogen Has Taken Over Tysabri

Are you a biotech or specialty pharma that is short on funding? Well, then you might be in luck – Elan Corp. PLC is about to come into a lot of cash and is looking to spend it. The Dublin-based company doesn’t seem to have many requirements for the sort of asset it is willing to fund either, so all cash-strapped companies with late-stage or commercial assets are eligible to apply.

Elan’s newfound wealth will come in the form of a $3.25 billion upfront payment from current partner Biogen Inc. for the Irish company’s half of its rights to the multiple sclerosis drug Tysabri (natalizumab). The transaction effectively ends the decade-long partnership in which the companies split profits 50/50. The deal is expected to close in the second quarter of this year and will include a royalty stream to Elan. The Irish company will receive 12% of sales for the first year; then, its royalty rate jumps to 18% on all sales under $2 billion and 25% on sales over $2 billion