Johnson & Johnson to buy Elan's interest in Alzheimer's program

By Lisa Kerner

Charlotte, N.C., July 2 - Johnson & Johnson announced it agreed to acquire an 18.4% interest in Elan Corp. plc for $1 billion.

The investment gives Johnson & Johnson a stake in Elan's Alzheimer's Immunotherapy Program (AIP Program).

Elan's AIP Program is a collaborative effort with Wyeth to develop and commercialize products for the treatment and/or prevention of neurodegenerative conditions, including Alzheimer's.

According to Johnson & Johnson, its affiliate will commit up to $500 million to continue the development and launch of bapineuzumab, a potential treatment for Alzheimer's, under the AIP Program.

Elan, a Dublin, Ireland-based biotechnology company, will receive a 49.9% equity interest in the newly formed Johnson & Johnson company that will acquire the AIP Program.

The boards of directors of both companies have approved the transaction, which is expected to close in the second half of 2009.

Johnson & Johnson is a New Brunswick, N.J.-based health care company.

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