Elan Files Lawsuit Against Biogen Idec

Elan has filed suit against Biogen Idec in Federal Court in New York. Elan is seeking declaratory and injunctive relief that certain aspects of its transaction with affiliates of Johnson & Johnson comply with its collaboration agreement with Biogen Idec, for the development and marketing of Tysabri.

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 the latter’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 when 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 said: “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 US, the EU 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.”

Elan also requested that the Court declare judgment against Biogen Idec permanently, enjoining Biogen Idec from terminating the collaboration agreement based on their July 28, 2009 letter.