With deadlines looming, there are several unanswered questions swirling around the complicated Biogen Idec-Elan-Johnson & Johnson kerfuffle. Thanks to a federal judge's surprise ruling last week in a Manhattan court, Elan has until Sept. 26 to fix the breach of contract the judge said it committed in its Tysabri licensing relationship.
If it doesn't fix the breach, Elan could lose its half of Tysabri, which stands to hit $1B in sales this year. But in fixing the breach, Elan must also negotiate with J&J, which as part of its sprawling $1.5 billion deal for Elan stock and Alzheimer's assets, thought it had a side deal with Elan to help buy out Biogen's half of Tysabri (an event triggered if and when Biogen is ever bought out).
Confused yet? Hang on: This side deal, though, turned out to be the source of the breach, the judge said -- by giving J&J the option to help with the financing, Elan had assigned its Tysabri rights without its partner Biogen's consent. And if J&J doesn't like the way Elan is reworking the side deal, it can walk away from the entire Elan/Alzheimer's deal on Sept. 15.
Follow along as Alex Lash and Brenda Sandburg walk us through this mess, by clicking the button below. Hey know what? You can access the podcast via iTunes also.
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