Elan's $3.25 bln deal reduces risk - and raises it
One in hand and two in bush
The biotech is selling part of its 50 pct stake in its blockbuster drug, and main asset, Tysabri, to partner Biogen. That should maximize Elan’s profit: this reduces the incentive Biogen has to sell competing drugs. The danger is the cash burns a hole in the company’s pocket.