Biotech Values

[DewDiligence]

ELN Breached Tysabri Agreement with BIIB

[Several posters on this board have cited the ineptness of ELN’s CEO. Evidently, ELN’s legal staff has some shortcomings too. Various bloggers have noted that ELN's recent side deal with JNJ was likely a violation of the Tysabri agreement with BIIB, and now a judge agrees.]

http://www.reuters.com/article/marketsNews/idINN0312703920090903

›U.S. Judge rules Elan breached Biogen contract

Thu Sep 3, 2009 5:30pm EDT

NEW YORK, Sept 3 (Reuters) - Irish drugmaker Elan Corp PLC breached a collaboration agreement with Biogen Idec Inc over its multiple sclerosis drug Tysabri in making a deal with Johnson & Johnson, a U.S. judge ruled on Thursday.

Manhattan federal court judge Deborah Batts said Elan has 23 days to repair the breach in the contract after J&J had received an option to give debt-ridden Elan the money to acquire Biogen's share of Tysabri if Biogen were acquired.

She said Biogen "is within its rights" to give Elan "the opportunity to cure that breach."

The case is Elan Pharma International Limited v. Biogen, Inc 09-cv-06928 in U.S. District Court for the Southern District of New York (Manhattan)‹