J&J, Elan Sign Agreement For Alzheimer’s Immunotherapy Program

Johnson & Johnson (J&J) and Elan have signed an agreement whereby J&J (through a newly formed company) will acquire all the assets and rights of Elan related to its Alzheimer’s Immunotherapy Program (AIP Program).

In addition, Johnson & Johnson will invest $1 billion in Elan in exchange for newly issued American Depositary Receipts of Elan, representing 18.4% of Elan’s outstanding ordinary shares.

The AIP Program represents Elan’s interest in collaboration with Wyeth to research, develop and commercialize selective products for the treatment and prevention of neurodegenerative conditions, including Alzheimer’s disease.

J&J will continue Elan’s activities with Wyeth under the AIP Program, and will initially commit up to $500 million to continue the development and launch activities of bapineuzumab, as well as other compounds. The agreement provides for additional funding obligations of the parties, if needed.

In consideration for the transfer of these rights and assets, Elan will receive a 49.9% equity interest in the newly formed Johnson & Johnson company, that will acquire the AIP Program. Elan will be entitled to a 49.9% share of the profits and certain royalty payments upon the commercialization of products, under the collaboration with Wyeth.