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Wednesday, February 6, 2013

Biogen pays Elan $3.25 billion to take over MS drug, (NASDAQ: BIIB)

Biogen Idec is to take full ownership of blockbuster multiple sclerosis drug Tysabri after agreeing to pay Irish partner Elan $3.25 billion plus future royalties on sales of the drug.The deal gives Elan strategic flexibility to purchase new assets but leaves unclear the future direction of the company, since Tysabri was by far its most important product.Sales of Tysabri, which provides Elan with almost all of its revenue, rose 8 percent to $1.6 billion last year. A filing last month for approval to sell the drug as a first-line treatment for could boost sales further.The Irish drugmaker has co-marketed the drug with the larger U.S. company for 12 years and said it would receive a royalty of 12 percent of Tysabri global net sales for the first 12 months after the deal is completed.

Biogen Idec Inc. (Biogen Idec) is a global biotechnology company. Shares of BIIB remained unchanged at $157.36. In the past year, the shares have traded as low as $114.53 and as high as $158.39. On average, 1299780 shares of BIIB exchange hands on a given day and today's volume is recorded at 0.