Johnson & Johnson is to cut the value of a partnership deal with Irish biotech company Elan after problems with the latter’s partnership with Biogen Idec over the drug Tysabri.
Elan works with Biogen to market the treatment for multiple sclerosis and Crohn’s disease, and a judge has ruled that part of J&J’s original offer violated the Elan-Biogen partnership.
The pact between Elan and J&J would have allowed the latter to make an offer for Biogen’s share of Tysabri if Biogen was ever taken over by another company.
As a result of the judgment, J&J will reduce the value of the deal to $885 million (£533 Million) after having previously agreed to invest up to $1 billion.
In the meantime, J&J will acquire the majority of Elan’s stake in an Alzheimer’s disease treatment partnership with Wyeth, and roll it into a new company that will be 49.9% owned by Elan.
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