Perrigo to buy Elan Corp.

ALLEGAN, Mich. — U.S.-based drug maker Perrigo Co. will buy Ireland's Elan Corp. for $8.6 billion, the companies said Monday.

Elan is best known for the multiple sclerosis treatment Tysabri (natalizumab), marketed and distributed by Biogen Idec. Perrigo manufactures various branded and generic prescription and OTC drugs. A previously announced deal, whereby New York-based Royalty Pharma would acquire the Dublin-based drug maker, fell apart last month after Elan shareholders voted in favor of a share-buyback plan.

"Through this transaction, Perrigo establishes a diversified platform for further international expansion," Perrigo chairman and CEO Joseph Papa said. "We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan's assets, including a large cash balance and a double-digit royalty claim on Tysabri."

The Elan-Perrigo deal is expected to close by the end of this year, and the two companies will be combined under New Perrigo, which will be incorporated in Ireland and called Perrigo Co.

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