UPDATE 1-J&J buys $1 bln stake in Elan, shares soar
* J&J gets 18.4 pct stake in Elan via issue of new shares
* U.S. group takes over interest in Alzheimer's programme
* Relationship with Wyeth to continue
* Elan shares jump 30 percent
(Adds details, background)
LONDON, July 2 (Reuters) - Johnson & Johnson (JNJ.N: Quote, Profile, Research) is take over most of Elan Corp (ELN.I: Quote, Profile, Research) Alzheimer's research and invest $1 billion in new Elan equity in exchange for an 18.4 percent stake in the Irish drugmaker, the companies said on Thursday.
The deal marks the end of a strategic review by Elan (ELN.N: Quote, Profile, Research)(ELN.L: Quote, Profile, Research) and its adviser Citigroup, following pressure from investors for change at the group, which has been burning through cash at a rapid rate.
J&J will initially commit up to $500 million to develop and commercialise Elan's experimental Alzheimer's treatment bapineuzumab and will continue Elan's existing activities with Wyeth WYE.N under their Alzheimer's immunotherapy programme. Continued...
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