Elan chief extends contract

ELAN shares surged 11% yesterday as investors gained confidence from news that the pharmaceutical company had agreed a contract extension with its chief executive.

The company told the Securities and Exchange Commission (SEC), America’s top watchdog for public companies, that Kelly Martin had signed a new, open-ended contract, replacing the three-year deal due to expire at the end of the year.

Investors treated the news as a vote of confidence in the company’s future and a sign that Tysabri, Elan’s controversial treatment for multiple sclerosis (MS), would soon be back on the market.