Elan sells Prialt rights to Japanese firm

ELAN has sold the European sales rights to its painkilling drug Prialt in a deal that could net the company €84 million.

Elan said it will retain the rights to sell Prialt, used to treat chronic pain, in the United States, following yesterday's deal with the Japanese drug firm Eisai Co.

Athlone-based Elan will net almost €41m in cash and €8.4m within two years or when Eisai launches Prialt in Europe, whichever is sooner.

The remaining cash will be paid if Prialt reaches certain sales targets.

Elan said it expects the sale of the European rights to be finalised by the end of March, though it is subject to regulatory authority approvals and other customary closing conditions

Prialt was launched in early 2005 and had sales of €5.25m in the year.

Elan's chief executive Kelly Martin said Prialt has been highly effective in treating patients suffering from severe chronic pain.

"Patient need in this area remains significant given that there have not been any meaningful therapeutic advances in this area for more than two decades. We are delighted that this transaction will enable Eisai to offer this new therapy to patients throughout Europe."

Approval for the sale of Prialt in Europe was given by regulators last February.

Elan will find out next month if its multiple sclerosis drug Tysabri will be allowed back on the market. Elan voluntarily withdrew Tysarbi from sale last year, after it was discovered two patients who had been taking the drug in conjunction with another treatment developed a fatal brian disease.

Tysabri is expected to be re-approved by the US Food and Drug Administration.