Pfizer rumour sends Elan shares soaring by 9%

IRISH pharmaceutical firm Elan saw its share price jump by more than 9% in Dublin and 6% in New York yesterday, after healthcare giant Pfizer became the latest name to be linked with a potential takeover bid for the Dublin and Athlone-based company.

The speculation arose yesterday from the US and comes hot on the heels of reports last weekend that talks between Elan and Bristol-Myers Squibb had fallen through.

Elan has also recently been talked about as a possible takeover target for Danish pharma, Lundbeck, but that company recently said it would not be able to raise the required funds, in the current credit environment, to buy a company like Elan.

Swiss group Roche, and a number of private equity houses, have also been linked to bids for the Irish company, which co-owns the Tysabri multiple sclerosis drug.

A spokesperson for Elan said yesterday that the company does not comment on either rumour or market speculation.

However, that didn’t stop fevered movement in the company’s shares.

In Dublin, Elan jumped by as much as 9.41% – or 48c – to close at €5.58 per share.

The company has been undertaking a strategic review of its business since the start of this year and recently said that its preferred option would be a partnership with a large international pharmaceutical company.

The company’s chief executive Kelly Martin also recently said that while the process (being undertaken by Citigroup) was ongoing, with no fixed deadline for completion, management was looking for an outcome sooner rather than later.