Irish drugmaker Elan has breached a collaboration agreement with Biogen Idec for the multiple sclerosis drug Tysabri in making a deal with Johnson & Johnson, a U.S. judge has ruled. According to Reuters, Manhattan Federal Court Judge Deborah Batts said Elan has until Sept. 26 to repair the breach in the contract. Pharmaceutical giant J&J had received an option to give debt-ridden Elan the money to acquire Biogen’s share of Tysabri if Biogen were bought. J&J would thus become Elan’s partner. Biogen’s lawyer Michael Gruenglas argued in court on that Elan had given up rights in breach of its 50-50 partnership with Biogen and “is no longer in the driver’s seat, Johnson & Johnson is driving the car.” Gruenglas was persistently questioned by the judge, but ultimately won the day. “It appears to the court that Elan has designated an obligation it has to Johnson & Johnson by taking direction from Johnson & Johnson on the purchase price negotiations,” Batts said in a ruling from the bench after five hours of arguments. She said Biogen “is within its rights” to give Elan “the opportunity to cure that breach.” Elan “has 23 days to fix that problem” she said. Tysabri is Biogen’s most important growth driver, on track to generate $1 billion in sales this year. Biogen spokeswoman Naomi Aoki said that, assuming Elan resolves the breach, “we look forward to continuing to work with them to bring Tysabri to MS patients.”
Judge Decides Elan Breached Pact with Biogen
Biogen spokeswoman Naomi Aoki said that, assuming Elan resolves the breach, “we look forward to continuing to work with them to bring Tysabri to MS patients.”
September 4, 2009