Skip to main content

Johnson & Johnson will take over most of Elan Corp.'s Alzheimer's research and invest $1-billion (U.S.) in new Elan equity in exchange for an 18.4 per cent stake in the Irish drugmaker, the companies said on Thursday.

The deal marks the end of a strategic review by Elan and its adviser Citigroup, following pressure from investors for change at the group, which has been burning through cash at a rapid rate.

J&J will initially commit up to $500-million to develop and commercialise Elan's experimental Alzheimer's treatment bapineuzumab and will continue Elan's existing activities with Wyeth under their Alzheimer's immunotherapy programme.

Story continues below advertisement

Wyeth is the process of being acquired by Pfizer.

J&J said the transaction would dilute its adjusted earnings in 2009 by between 2 and 3 cents a share. Shares in Elan leapt 30 per cent in Dublin.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.