Biogen to acquire full control of Tysabri

Biogen has announced it is to acquire full rights and control of Tysabri from Elan for an upfront cash and contingent payment.

The biotechnology company confirmed it will purchase the smaller firm's interest in the compound and is set to gain full strategic, commercial and decision-making rights to the humanised monoclonal antibody.

As part of the plans, a previous collaboration agreement between the companies involving an equal split of the profits will be terminated, along with the agreement's amended control provisions.

The transaction was approved by the boards of directors of both companies and is subject to the customary review process in the US and other customary review processes.

George A Scangos, chief executive of Biogen, said: "This is a natural next step for Biogen Idec and Tysabr and it underscores our deep, long-term commitment to improving the lives of multiple sclerosis patients around the world."

Under the terms of the new agreement, Biogen will use its existing cash reserves to make a payment of 3.25 billion dollars (two billion dollars) to Elan upon the closing of the transaction and make future payments to the company.