Biotech Values

[tinkershaw]

It may very well contradict my hypothesis on the value that J&J and the reasons why J&J put such value on the alzheimer program.

It seems clear to me the reason that Elan did this was to have another deep pocket to partner if Biogen gets taken out. I am not aware of all the contractual terms between everybody, but if there is a change of control provision if Biogen is taken out, then Biogen can no longer complain that it has not been acquired because of Tysabri concerns. And it looks like J&J is not overly concerned with liability issues with tysabri either.

All in all, unlike say the alzheimer deal, this may not be a bad deal for Elan. In fact, if Biogen lost its interest in tysabri so to would go the avonex conflict and in may come the superior marketing abilities of J&J.

Tinker