Athlone-based company Elan is to receive an injection of $1.5 billion from drug company Johnson & Johnson, as part of a deal to expand Elan’s research into the treatment of Alzheimer’s.
Johnson & Johnson is to acquire an 18.4 per cent stake in Elan shares as part of the agreement, which was announced yesterday [Thursday]. The US company will pay $1 billion for the shares, and a further $500 million will be invested in the development of bapineuzumab, a potential first-in-class treatment that is being evaluated for slowing the progression of Alzheimer's disease.
A new company will be established by Johnson & Johnson to take over Elan’s Alzheimer's Immunotherapy Program (AIP ). The AIP represents Elan's collaboration with Wyeth to research and develop products for the treatment and/or prevention of conditions including Alzheimer's disease.
Elan will receive a 49.9 per cent equity interest in the newly formed Johnson & Johnson company that will acquire the AIP, and will be entitled to a 49.9 per cent share of the profits and royalty payments.
Elan CEO, Kelly Martin, believes the transaction will positively impact both Elan and patients worldwide.
"This transaction will leverage Elan's unique scientific and clinical work and leadership in bringing treatments to market that potentially slow the progression of Alzheimer's disease. The Elan commitment to scientific innovation and patients remains absolute and we will continue to build upon and expand our leadership in the fields of neuroscience and immunology."
