The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Sales of Tysabri accounted for essentially all of Elan’s $1.2-billion (U.S.) of revenue in 2012.
Sales of Tysabri accounted for essentially all of Elan’s $1.2-billion (U.S.) of revenue in 2012.
(BIOGEN/)

BREAKINGVIEWS

Will a newly cash-flush Elan use funds wisely?

Elan Corp.’s decision to sell much of its stake in its multiple sclerosis drug reduces the company’s risk – and raises it. The Dublin-based biotech company is getting $3.25-billion (U.S.) from partner Biogen Idec for part of its 50-per-cent share in its blockbuster drug, and main asset, Tysabri. That should maximize Elan’s profit and reduce the incentive Biogen has to sell competing drugs. The danger is that the cash burns a hole in the company’s pocket.