Mitchell Jaworski - AHN Reporter
New Brunswick, NJ (AHN) - Johnson & Johnson announced Thursday it has entered an agreement with Elan Corp. wherein they will acquire an 18.4 percent stake in the company and place a current Alzheimer's company into a new company.
The agreement calls for J&J to takeover Elan's role in an Alzheimer's Immunotherapy Program (AIP), which it will place in a newly formed J&J subsidiary.
J&J is also investing $1 billion in Elan, which will give them an 18.4 percent stake in the company.
The AIP program was a partnership between Elan and Wyeth to develop products to treat neurodegenerative conditions, like Alzheimer's.
"Alzheimer's disease is a significant unmet need in aging populations globally," said Sheri McCoy, Worldwide Chairman of J&J.
"Johnson & Johnson's development capabilities, commercial experience and global reach will provide the foundation to accelerate the AIP Program development, and increase its potential availability for patients globally," added McCoy.
The deal also gives Elan a minority stake in the newly formed J&J company that will host the AIP.
Alzheimer's costs the U.S. health sector an estimated $148 billion a year and impacts about 5.3 million Americans.
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