Merrion: Tysabri sale might be best for Elan

SELLING its leading drug, Tysabri, could be the best option for Elan to improve shareholder value and raise necessary funding for debt reduction and R&D needs, according to Merrion Stockbrokers.

The Irish drug-making company is currently in the midst of a strategic review aimed at raising funds for R&D work and to pay off debt for the next two years — be it through selling a stake in the group, disposing of assets or merging/selling the entire business.

Merrion suggested in a research note yesterday, that Elan needs funding of around $1.1bn (€0.84bn) to “survive” and get its headline Alzheimer’s treatment (AAB- 001/Bapineuzamab) to market.