Years Later, MS Drug Ownership Consolidation — M&A Next?

The terms call for Biogen Idec to pay additional royalties to Elan of 12% for 12 months, followed by a contingent fee of up to 18% on Tysabri sales of up to $2 billion and 25% thereafter. Elan recently recorded that its total Tysabri sales were up almost 10% to $306.6 million in the third quarter of 2012. This is another big move by Elan, as it recently sold the remaining stake in Alkermes PLC (NASDAQ: ALKS). It sold some 76% or so a year ago (March 2012) for some $381 million at the time.

What is so interesting is that Elan is trading lower on the news by 5%, at $9.95 against a 52-week range of $9.64 to $15.27. Yahoo! Finance lists its market cap as being $6.2 billion. Another interesting thing is that the MS drug market has grown more competitive and a new entrant just came on the stage.

Opexa Therapeutics Inc. (NASDAQ: OPXA) just got on the map after securing an option and license agreement with Merck Serono on its multiple sclerosis treatment, sending its $7 million in market cap stock up from $1.21 to $3.15 in one trading session. The potential payments to Opexa could total $225 million, excluding royalty payments, if all goals are met.