U.S. Judge rules Elan breached Biogen contract

NEW YORK, Sept 3 (Reuters) - Irish drugmaker Elan Corp PLC (ELN.I) (ELN.N) breached a collaboration agreement with Biogen Idec Inc (BIIB.O) over its multiple sclerosis drug Tysabri in making a deal with Johnson & Johnson (JNJ.N), a U.S. judge ruled on Thursday.

Manhattan federal court judge Deborah Batts said Elan has 23 days to repair the breach in the contract after J&J had received an option to give debt-ridden Elan the money to acquire Biogen's share of Tysabri if Biogen were acquired.

She said Biogen "is within its rights" to give Elan "the opportunity to cure that breach."

The case is Elan Pharma International Limited v. Biogen, Inc 09-cv-06928 in U.S. District Court for the Southern District of New York (Manhattan) (Reporting by Grant McCool; Editing by Tim Dobbyn)