J&J Antes Up $1 Billion for Alzheimer’s Push With Elan
Health-care giant J&J is making a $1 billion bet for a stake in Irish drug maker Elan and will invest an additional $500 million in Elan’s closely watched experimental bapineuzumab that is in late-stage studies to treat Alzheimer’s, the companies announced this morning.
With the deal, Elan essentially turns over to J&J the development rights of bapineuzumab, which Elan has been developing in partnership with Wyeth (soon to be bought by Pfizer). But the compound isn’t as promising as it initially appeared to be, which resulted in severe punishment of Elan’s stock price last year. Elan has also been sharply criticized by shareholders for its botched marketing of multiple sclerosis drug Tysabri and executive perks.
In January, Elan announced that it would conduct a strategic review process to examine options for the future of the company. More than 30 companies expressed interest in talking with the company since then, Elan CEO Kelly Martin told analysts on a call today.
Under the deal, J&J will become Elan’s largest shareholder with a 18.4% stake in Elan. J&J will also form a new subsidiary company with assets from Elan’s Alzheimer’s drug-development program, in which Elan will hold a 49.9% stake. Elan will share in […]
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