Back in 2008, Elan put EDT up for sale but couldn't find a buyer for the unit that helps companies make extended-release versions of their drugs. And last year the company said it planned to spin out the unit once the IPO market was in better shape.
The fit seems perfect for Alkermes, which also has an extended-release platform. It receives royalties from Johnson & Johnson's
The addition of royalties from drugs such as Johnson & Johnson's Invega Sustenna and Acorda Therapeutics's
While Elan might be giving away EDT a little cheaper than it would have hoped, the deal is generally positive for the company. It gets some much needed cash to pay off debt and retains the faster growing neurology business. The new company is a pure play on Tysabri, which it sells with Biogen Idec
It may have taken them awhile to find each other, but Alkermes and EDT look like a pretty good match.
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