Irish drugmaker Elan closed the sale of its 50 percent stake in multiple sclerosis (MS) drug Tysabri on Tuesday, clearing the way for it to return cash to investors, spend on acquisitions and stave off an approach for the company. Under a deal announced in February, Biogen Idec will take full ownership of the blockbuster drug for an upfront payment of $3.25 billion plus royalties of up to 25 percent on future sales.Elan plans to give shareholders one-fifth of that royalty share as well as a further $1 billion from a share buyback, and spend what is left on a series of acquisitions that would effectively reinvent itself as a company.However, U.S. investment firm Royalty Pharma attempted a $6.6 billion approach for the Dublin-based company, which U.S. group Johnson & Johnson holds an 18 percent stake in.Elan rejected Royalty Pharma's offer and will seek approval from shareholders next week to commence its share buyback. The company also said on Tuesday that it would redeem $600 million of debt maturing in 2019.
Biogen Idec Inc. (Biogen Idec) is a global biotechnology company. Shares of BIIB traded higher by 2.81% or $5.42/share to $198.19. In the past year, the shares have traded as low as $124.23 and as high as $196.78. On average, 1541430 shares of BIIB exchange hands on a given day and today's volume is recorded at 2039241.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. Shares of JNJ traded higher by 0.93% or $0.76/share to $82.69. In the past year, the shares have traded as low as $61.71 and as high as $81.96. On average, 9648610 shares of JNJ exchange hands on a given day and today's volume is recorded at 10342171.
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