Cadwalader, Wickersham & Taft and Ropes & Gray are advising on an agreement between biotechnology giants Biogen Idec and Elan that will see the former spend at least $3.25 billion to acquire full rights to the drug Tysabri, which is used to treat multiple sclerosis and Crohn’s disease.
Tysabri, which generated $1.6 billion in sales in 2012, has been Biogen’s best-selling drug, according to Bloomberg. The company has been splitting profits from Tysabri equally with Elan, an Irish drugmaker that has now essentially become an investment vehicle after selling its sole remaining asset. While the market reaction has been harsh to Elan’s decision to sell its rights to Tysabri for $3.25 billion in cash plus future royalties, Reuters reports that the Dublin–based company will use the proceeds to acquire new drugs.
