It was no secret that Biogen Idec (BIIB)
wanted to gain 100% control of the successful MS drug Tysabri, but it
was likewise no secret that the company had virtually no interest in
acquiring its partner Elan (ELN).
As a result, Wednesday's announcement that Biogen Idec will buy all
rights to Tysabri looks like a win for the company, provided the drug
continues to grow.
The question is whether Elan shareholders will
really benefit from this deal. Pulling forward the Tysabri revenue
stream certainly de-risks part of the story, but now investors have to
contend with the question of how management will handle that cash. At
this point, I'm not optimistic as the plans laid out by Elan management
suggest that they have a much higher opinion of their capabilities than
the facts would seem to support.
Please continue here:
Post-Tysabri, Will Elan Waste The Windfall?
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