Eire's Elan To Pay $602 Million For US Biotech Firm Athena

Irish pharmaceutical company Elan has made an offer of $602 million in stock for a 91% stake in California, USA-based biotechnology company Athena Neurosciences. Under the terms of the deal, Athena shareholders will get 0.2956 Athena American Depositary Shares for each Athena share; this values the latter at $18.25 per share. The proposed acquisition is still subject to both companies' shareholders' approval.

The move follows an initial research alliance between the two companies a year ago. Athena's research is focussed on neurology, seeking treatments for disorders such as Alzheimer's and Parkinson's disease and multiple sclerosis. On Alzheimer's, it has cooperated with Eli Lilly & Co for a number of years. Elan, on the other hand, has expertise in drug delivery; its sales last year reached $192 million, compared with Athena's $53.4 million.

The US Food and Drug Administration has recently approved Elan's once-daily dosage formulation of the antiarthritic naproxen, which will be marketed in the USA by American Home Products under the trade name Naprelan.