Elan sues Biogen on Tysabri

Elan Corporation, plc has filed suit against Biogen Idec Inc in Federal Court in New York seeking declaratory and injunctive relief that certain aspects of Elan's recently announced transaction with affiliates of Johnson & Johnson comply with Elan's Collaboration Agreement with Biogen Idec for the development and marketing of Tysabri.

In a letter to Elan dated July 28, 2009, Biogen Idec alleged that Elan was in material breach of the Collaboration Agreement. Biogen Idec's assertion against Elan relates to Elan's ability to obtain financing from an affiliate of Johnson & Johnson to potentially purchase Biogen Idec's Tysabri rights, if Biogen Idec undergoes a change of control. Biogen Idec made this assertion even though it was not in possession of the relevant agreement related to the Transaction at the time, which Elan has offered to share with Biogen Idec. Elan strongly believes that it is in compliance in all respects with the Collaboration Agreement.