Irish drugmaker Elan Corp. says U.S.-based Biogen Idec will take over full ownership of the multiple sclerosis treatment Tysabri in exchange for a $3.25 billion cash payment and royalties on future sales.
The drug developers currently split earnings from Tysabri, but Elan says the new deal will give it capital for investing and growing its business.
Under the new terms, Elan will receive a royalty of 12 percent of global Tysabri sales for the first 12 months. It will then receive a royalty of 18 percent on up to $2 billion of global sales and 25 percent on more than $2 billion.
The boards of both companies have approved the deal, which is expected to close by the end of the second quarter.
Biogen is based in Weston, Mass.