Elan says hires Lehman for advice on Biogen drug

NEW YORK, Oct 15 (Reuters) - Irish drug company Elan Corp. Plc (ELN.I) (ELN.N) on Monday said it hired Lehman Brothers LEH.N to advise it on options for its Tysabri drug collaboration with Biogen Idec (BIIB.O) in light of the latter company putting itself up for sale.

Elan has a 50 percent interest with Biogen in Tysabri, a multiple sclerosis drug that is rebounding after being pulled from the market in 2005 due to safety concerns.

Under the terms of the agreement, if Biogen is sold, Elan has various rights, including a right to acquire Biogen's interest for "fair value." It also has the right to sell its Tysabri interest, continue the pact or restructure it, it said.

Biogen, one of the world's largest biotechnology companies, last week said it has put itself up for sale as revenue from its flagship multiple sclerosis drug Avonex declines.