Elan to boost earnings with deal on new MS drug

THE IRISH pharmaceuticals group Elan will benefit financially from a deal announced between Biogen Idec and Acorda Therapeutics to commercialise a new multiple sclerosis drug outside the United States.

The drug, Fampridine-SR, which aims to improve the walking ability of people with multiple sclerosis, was developed by Elan’s drug development group in Athlone. It licensed worldwide rights to Acorda, which has subsequently agreed to allow Biogen to market the drug outside the US.

Elan will receive 7 per cent of the $110 million up front payment agreed as part of the deal and the same percentage of up to $400 million in milestone payments. It will also receive supply and royalty payments. The drug will be manufactured at the Athlone Elan Drug Technologies plant for both Acorda and Biogen. Elan and Biogen are partners in a separate MS drug programme, Tysabri.