Johnson & Johnson Closes Deal For Elan

J&J on Thursday closed its deal to buy a stake in Elan for $885 million and obtain rights to the biotech company's Alzheimer's disease treatment program.

NEW YORK (AP) -- Johnson & Johnson on Thursday closed its deal to buy a stake in biotechnology company Elan Corp. and obtain rights to the company's Alzheimer's disease treatment program, the companies said.

On Monday, Ireland-based Elan Corp. said New Brunswick, N.J.-based J&J reduced the value of a partnership deal under an amendment as part of a move meant to fix a contract breach with Biogen Idec Inc. Under the amendment, J&J paid $885 million for an 18.4 percent stake in Elan. Before the amendment, J&J said it would pay up to $1 billion.

Also, J&J will commit up to $500 million for development of bapineuzumab, which is aimed at treating Alzheimer's disease.

Shares of Elan rose 12 cents to $7.67 while J&J shares rose 26 cents to $60.45 in morning trading.

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