DUBLIN, July 21 (Reuters) - Elan (ELN.I) said on Tuesday it gave U.S. healthcare conglomerate Johnson & Johnson (JNJ.N) an option to acquire Biogen Idec Inc's (BIIB.O) 50 percent stake in multiple sclerosis drug Tysabri.
The option is part of J&J's recent $1.5 billion deal with Ireland's Elan.
In the event of a change of control at Biogen, J&J can finance Elan's purchase of Biogen's rights to the potential blockbuster drug giving J&J a 50-50 partnership with Elan.
Elan's shares were up 1.2 percent at 5.75 euros at 1321 GMT.
Elan and Cambridge, Massachusetts-based Biogen have a 50-50 partnership under which each has the right to acquire full control of Tysabri, which is now on track to generate $1 billion a year, should there be a change of control at either company.
Earlier this month, J&J agreed to pay $1 billion for an 18.4 percent stake in Elan, and $500 million for a majority stake in its pipeline of experimental Alzheimer's disease drugs.
"We have entered into an arrangement with Johnson & Johnson that would allow them to finance us to purchase the other 50 percent of Tysabri in the event that there was a change of control at Biogen," Elan Chief Financial Officer Shane Cooke told a news conference. "If J&J were to finance us to do that, then we would enter into a collaboration with J&J on a 50-50 basis," he said, adding that its change of control agreement with Biogen remained the same.
The Dublin-based company confirmed the new agreement after Reuters learned from sources with knowledge of the $1.5 billion deal that Elan had given J&J an option to acquire Biogen's stake [ID:nN20149879].
Elan, which beat expectations with a 14 percent rise in second-quarter revenues, said around 43,300 patients were on Tysabri therapy worldwide by the end of June.
Biogen and Elan originally predicted 100,000 patients would be taking Tysabri by the end of 2010. While they still expect to reach that figure, which would mean it could bring in between $2 billion and $3 billion a year, they don't expect to reach it within that time-frame.
(Editing by Erica Billingham)
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