Elan Corp. has filed a suit in the New York City federal district court asking the court to allow investment in its multiple sclerosis medicine Tysabri [natalizumab], from Johnson & Johnson. Under pressure from investors Elan has been looking for investment partners for the drug but has an existing marketing partnership with Biogen under which if either of them was acquired that the other company would be entitled to buy full control of Tysabri. J&J has agreed to buy 18.4 percent of Elan which will allow J&J to finance Elan"s purchase of Biogen"s Tysabri stake if Biogen was acquired. Biogen has threatened to take full control of the drug if this goes ahead because it contends that Elan is in breach of the partnership. According to Biogen neither of them has the right to enter into agreements with other companies without permission of the other partner whilst Elan says that the J&J deal is an option to ask for financing because they are a small company.
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