Johnson & Johnson takes $1.5 billion stake in Irish Elan

Johnson & Johnson (J&J), the world's biggest healthcare company, has invested $1.5 billion (Ôé¼1 billion) in Dublin, Ireland-based biopharmaceutical company Elan. J&J, whose headquarters are in New Jersey, USA, will take over ElanÔÇÖs 50 per cent stake in its Alzheimer's immunotherapy research partnership, or AIP Program, that it currently runs with pharmaceutical firm Wyeth, also based in New Jersey. J&J will set up a new company 49.9 per cent owned by Elan, with J&J gaining all rights to any medicines approved and Elan receiving 49.9 per cent of the profits, in addition to royalty payments. The research will focus on two injected medicines to stop the progression of AlzheimerÔÇÖs and on a vaccine preventing the buildup of plaque in the brain that causes symptoms such as memory loss and aggression. J&J plans to commit up to $500 million (Ôé¼350 million) initially for development of bapineuzumab, the compound that is at the most advanced stage in the testing process. Commenting on the partnership, ElanÔÇÖs chief executive officer, Kelly Martin, said:┬áÔÇ£This transaction will leverage ElanÔÇÖs unique scientific and clinical work and leadership in bringing treatments to market that potentially slow the progression of AlzheimerÔÇÖs disease. The Elan commitment to scientific innovation and patients remains absolute and we will continue to build upon and expand our leadership in the fields of neuroscience and immunology.ÔÇØ The deal gives J&J a total 18.4 per cent stake in Elan. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *