Elan to keep research arm as market tightens

IRISH drug making firm, Elan formally confirmed yesterday that it will retain its R&D arm, EDT (Elan Drug Technologies), “for the foreseeable future” due to the ongoing tightening in the credit markets.

Elan has been looking at selling EDT for several months. Yesterday — as it published solid third quarter figures showing a rise in revenue and a lowering of its losses — Elan said that although it received “considerable interest” from investors, the tightened financing markets had forced a postponement to any sale. Instead, Elan said it will establish “internal structures to enhance EDTs ability to develop and grow”.

The company reported a 53% year-on-year rise in third quarter revenue to $270 million (€210.6m) and a drop in operating losses for the period from $49m to $32m. Revenue growth came from an 85% year-on-year revenue rise from its multiple sclerosis treatment, Tysabri.