Elan Corp PLC (ELN)

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Elan Files Declaratory Suit Against Biogen Idec

Elan Corporation PLC


Elan Files Declaratory Suit Against Biogen Idec;

Company Has Not Breached Tysabri® Collaboration Agreement

Elan Corporation, plc (ISE:ELA) today announced that it has filed suit against Biogen Idec Inc. in Federal Court in New York seeking declaratory and injunctive relief that certain aspects of Elan’s recently announced transaction with affiliates of Johnson & Johnson (the “Transaction”) comply with Elan’s Collaboration Agreement with Biogen Idec for the development and marketing of Tysabri (the “Collaboration Agreement”).

In a letter to Elan dated July 28, 2009, Biogen Idec alleged that Elan was in material breach of the Collaboration Agreement. Biogen Idec’s assertion against Elan relates to Elan’s ability to obtain financing from an affiliate of Johnson & Johnson to potentially purchase Biogen Idec’s Tysabri rights, if Biogen Idec undergoes a change of control. Biogen Idec made this assertion even though it was not in possession of the relevant agreement related to the Transaction at the time, which Elan has offered to share with Biogen Idec. Elan strongly believes that it is in compliance in all respects with the Collaboration Agreement.

Elan is committed to aggressively and proactively protecting its science, property and assets.

Elan noted in a statement, “There's nothing in the pending Transaction that is contrary to our collaboration agreement with Biogen Idec for Tysabri, an important therapeutic discovered and primarily developed by Elan. Elan’s collaboration with Biogen Idec has been in place since 2000. During that time, Elan and Biogen Idec have obtained regulatory approval for Tysabri in the United States, the European Union and other countries and have made the significant benefits of Tysabri available to a growing number of patients throughout these countries. Nothing about that relationship has changed. This is the same agreement we have been operating under for the last nine years. It is unfortunate that, because of Biogen Idec’s actions, Elan was left with no alternative but to seek court intervention to protect its interest.”

In seeking declaratory relief, Elan has requested that the Court conduct expedited proceedings given the sixty (60) day cure period following which Biogen may seek to terminate the Elan-Biogen Collaboration Agreement. Elan continues its previously stated commitment to closing the transaction with Johnson & Johnson as soon as possible.

Elan also requested that the Court enter judgment against Biogen Idec permanently enjoining Biogen Idec from terminating the Collaboration Agreement based on their July 28, 2009 Letter.

http://www.investegate.co.uk/article.aspx?id=20090806151500Z1477&fe=1