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Friday, February 22, 2013

Elan plans $1 billion buyback and acquisitions, (NASDAQ: BIIB)

Irish drugmaker Elan will return $1 billion to shareholders and seek acquisitions with the proceeds of selling its stake in blockbuster multiple sclerosis (MS) treatment Tysabri to partner Biogen Idec.The sale of Tysabri, which was by far Elan's most important product and responsible for almost all its revenue, leaves the company's future shape unclear, but the deal now offers it flexibility to purchase new assets.The company said on Friday it would use almost a third of the $3.25 billion from the deal to buy back shares."By unlocking a portion of the Tysabri asset value ... we have a unique opportunity to reward shareholders, diversify our business and create a highly distinctive business platform upon which to advance to the benefit of shareholders and patients around the world," Elan Chief Executive CEO Kelly Martin said.

Biogen Idec Inc. (Biogen Idec) is a global biotechnology company. Shares of BIIB remained unchanged at $162.60. In the past year, the shares have traded as low as $114.53 and as high as $169.07. On average, 1306190 shares of BIIB exchange hands on a given day and today's volume is recorded at 0.