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Elan Announces Closing of TYSABRI® Collaboration Transaction with Biogen Idec

  Elan Announces Closing of TYSABRI® Collaboration Transaction with Biogen
  Idec

Business Wire

DUBLIN -- April 2, 2013

Elan Corporation, plc (NYSE:ELN) is pleased to announce the closing today of
the TYSABRI^® (natalizumab) Collaboration Transaction with Biogen Idec. The
agreement was announced on February 6, 2013.

Under the terms of the agreement, Elan has received $3.25 billion in cash and
will receive double digit tiered royalty payments, on all indications, for the
life of the complete TYSABRI asset. For the first twelve months Elan will
receive 12% royalties on in-market sales of TYSABRI, and thereafter, Elan will
receive 18% royalties on in-market sales up to $2 billion and 25% royalties on
in-market sales exceeding $2 billion. In 2012, in-market sales of TYSABRI were
$1.6 billion.

About TYSABRI

TYSABRI is approved in more than 65 countries. TYSABRI is approved in the
United States as a monotherapy for relapsing forms of MS, generally for
patients who have had an inadequate response to, or are unable to tolerate, an
alternative MS therapy due to the risk of progressive multifocal
leukoencephalopathy (PML). In the European Union, it is approved for highly
active relapsing-remitting MS (RRMS) in adult patients who have failed to
respond to beta interferon or have rapidly evolving, severe RRMS.

TYSABRI has advanced the treatment of MS patients with its established
efficacy. Data from the Phase 3 AFFIRM trial, which was published in the New
England Journal of Medicine, showed that after two years, TYSABRI treatment
led to a 68 percent relative reduction (p<0.001) in the annualized relapse
rate when compared with placebo and reduced the relative risk of disability
progression by 42-54 percent (p<0.001).

TYSABRI increases the risk of PML, an opportunistic viral infection of the
brain which usually leads to death or severe disability. Infection by the JC
virus (JCV) is required for the development of PML and patients who are
anti-JCV antibody positive have a higher risk of developing PML. Factors that
increase the risk of PML are presence of anti-JCV antibodies, prior
immunosuppressant use, and longer TYSABRI treatment duration. Patients who
have all three risk factors have the highest risk of developing PML. Other
serious adverse events that have occurred in TYSABRI-treated patients include
hypersensitivity reactions (e.g., anaphylaxis) and infections, including
opportunistic and other atypical infections. Clinically significant liver
injury has also been reported in the post-marketing setting. A list of adverse
events can be found in the full TYSABRI product labeling for each country
where it is approved.

As a result of the termination of the collaboration, TYSABRI will be marketed
and distributed solely by Biogen Idec. For full prescribing information and
more information about TYSABRI, please visit www.biogenidec.com.

About Elan

Elan is a biotechnology company, headquartered in Ireland, committed to making
a difference in the lives of patients and their families by dedicating itself
to bringing innovations in science to fill significant unmet medical needs
that continue to exist around the world. For additional information about
Elan, please visit http://www.elan.com.

About Biogen Idec

Biogen Idec uses cutting-edge science to discover, develop, manufacture and
market therapies for serious diseases with a focus on neurology, immunology
and hemophilia. Founded in 1978, Biogen Idec is the world's oldest independent
biotechnology company. Patients worldwide benefit from its leading multiple
sclerosis therapies and the company generates more than $5 billion in annual
revenues. For product labeling, press releases and additional information
about the company, please visit www.biogenidec.com.

The Directors of Elan accept responsibility for the information contained in
this announcement. To the best of their knowledge and belief (having taken all
reasonable care to ensure such is the case); the information contained in this
announcement is in accordance with the facts and does not omit anything likely
to affect the import of such information.

Any holder of 1% or more of any class of relevant securities of Elan or of
Royalty Pharma may have disclosure obligations under Rule 8.3 of the Irish
Takeover Panel Act, 1997, Takeover Rules 2007 (as amended).

Forward Looking Statements

This document contains forward-looking statements about Elan’s financial
condition, results of operations, business prospects and Tysabri that involve
substantial risks and uncertainties. You can identify these statements by the
fact that they use words such as “anticipate”, “estimate”, “project”,
“target”, “intend”, “plan”, “will”, “believe”, “expect” and other words and
terms of similar meaning in connection with any discussion of future operating
or financial performance or events. Among the factors that could cause actual
results to differ materially from those described or projected herein are the
following: the potential of Tysabri, which may be severely constrained by
increases in the incidence of serious adverse events (including death)
associated with Tysabri (in particular, by increases in the incidence rate for
cases of PML), or by competition from existing or new therapies (in
particular, oral therapies), and the potential for the successful development
and commercialization of additional products, whether internally or by
acquisition, especially given the separation of the Prothena business which
left us with no material pre-clinical research programs or capabilities;
Elan’s ability to maintain sufficient cash, liquid resources, and investments
and other assets capable of being monetized to meet its liquidity
requirements; the success of our development activities, and research and
development activities in which we retain an interest, including, in
particular, the impact of the announced discontinuation of the development of
bapineuzumab intravenous in mild to moderate Alzheimer’s disease; failure to
comply with anti-kickback, bribery and false claims laws in the United States,
Europe and elsewhere; difficulties or delays in manufacturing and supply of
Tysabri; trade buying patterns; the impact of potential biosimilar
competition, whether restrictive covenants in Elan’s debt obligations will
adversely affect Elan; the trend towards managed care and health care cost
containment, including Medicare and Medicaid; legislation and other
developments affecting pharmaceutical pricing and reimbursement (including, in
particular, the dispute in Italy with respect to Tysabri sales), both
domestically and internationally; failure to comply with Elan’s payment
obligations under Medicaid and other governmental programs; exposure to
product liability (including, in particular, with respect to Tysabri) and
other types of lawsuits and legal defense costs and the risks of adverse
decisions or settlements related to product liability, patent protection,
securities class actions, governmental investigations and other legal
proceedings; Elan’s ability to protect its patents and other intellectual
property; claims and concerns that may arise regarding the safety or efficacy
of Elan’s products or product candidates; interest rate and foreign currency
exchange rate fluctuations and the risk of a partial or total collapse of the
euro; governmental laws and regulations affecting domestic and foreign
operations, including tax obligations; whether we are deemed to be an
Investment Company or a Passive Foreign Investment Company; general changes in
United States and International generally accepted accounting principles;
growth in costs and expenses; and the impact of acquisitions, divestitures,
restructurings, product withdrawals and other unusual items. A further list
and description of these risks, uncertainties and other matters can be found
in Elan’s Annual Report on Form 20-F for the fiscal year ended December 31,
2012, and in its Reports of Foreign Issuer on Form 6-K filed with the SEC.
Elan assumes no obligation to update any forward-looking statements, whether
as a result of new information, future events or otherwise.

Contact:

Investor Relations:
Chris Burns, 800-252-3526
David Marshall, + 353-1-709-4444
or
Media Relations:
Emer Reynolds, + 353-1-709-4022
or
FTI Consulting
Jonathan Birt, +44-751-559-7858
or
Sard Verbinnen & Co
Jamie Tully, +1-212-687-8080