This excerpt taken from the ELN 6-K filed Aug 28, 2009.
Johnson & Johnson transaction
On 2 July 2009, following completion of a strategic review announced in January 2009, we announced a definitive agreement whereby Johnson & Johnson will acquire substantially all of the assets and rights of our AIP, through a newly formed Johnson & Johnson company. In addition, Johnson & Johnson will invest $1 billion in Elan in exchange for newly issued American Depositary Shares of Elan which will represent 18.4% of our outstanding ordinary shares.
Johnson & Johnson will assume and continue our activities with Wyeth under the AIP and will initially commit up to $500 million to continue the development and launch activities of bapineuzumab, a potential first-in-class treatment that is being evaluated for slowing the progression of Alzheimers disease, as well as other compounds. The agreement provides for additional funding obligations of the parties if needed.
In consideration for the transfer of these rights and assets, we will receive a 49.9% equity interest in the newly formed Johnson & Johnson company that will acquire the AIP. We will be entitled to a 49.9% share of the profits and certain royalty payments upon the commercialisation of products under the collaboration with Wyeth.
The closing of the transaction, which is subject to customary closing conditions, is expected in the second half of 2009.
In the context of the transaction with Johnson & Johnson, we are re-evaluating our longer term biologics manufacturing and fill-finish requirements, which may result in futher non-cash asset impairment charges. At 30 June 2009, the carrying value of these assets amounted to $47.5 million.