Leadership

Elan in US$1bn Johnson & Johnson deal

02.07.2009
Pharmaceutical giant Johnson & Johnson is to take an 18.4pc stake in Dublin-listed Elan as part of a US$1bn investment announced today.

Through the investment, Johnson & Johnson will acquire all the assets and rights to Elan’s Alzheimer’s Immunotherapy Programme (AIP) via a newly formed company.

Under the terms of the deal, Elan will receive a 49.9pc stake in the new Johnson & Johnson company, and will be entitled to a 49.9pc share of the profits and certain royalty payments upon the commercialisation of products.

Elan is collaborating with Wyeth on the AIP Programme in researching, developing and commericialising products for the treatment of Alzheimer’s and other neurodegenerative conditions.

Under the terms of the Johnson & Johnson/Elan deal, Johnson & Johnson will invest some US$500m in developing and launching a drug called bapineuzumab, which is currently in Phase 3 of clinical trials for its ability to slow the progression of Alzheimer’s.

According to Elan’s executive vice-president and chief scientific officer Dale Schenk, the Johnson & Johnson deal will enable Elan to offer this drug to patients globally: “After 20 years of following the science and advancing this technology into the latest stages of clinical development, it is our responsibility to ensure that this therapy, upon further clinical and regulatory progress, may be made available to the broadest range of patients globally. The capabilities of Johnson & Johnson will help in achieving this goal.”

Shares in Elan jumped over 30pc in Dublin when the announcement was made.