Elan plans $1 billion repurchase program post Tysabri deal closure

22 February 2013

Ireland-headquartered drugmaker Elan Corp (NYSE: ELN) disclosed its deployment plans for the $3.25 billion upfront payment received post-closing of the Tysabri (natalizumab) collaboration with US biotech firm Biogen Idec (The Pharma Letter February 7).

About $1 billion to be used for share repurchases, and the remainder will be used as an investment in a variety of business assets and to refinance the debt. The royalty cash flow is expected to provide a high margin income for long term.

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