Elan due to conclude strategic review

DUBLIN and Athlone- based pharmaceutical company Elan is hoping to conclude its ongoing strategic review in the near term, its chief executive said yesterday.

Speaking from a healthcare conference, hosted by investment bank Goldman Sachs, in New York, Kelly Martin said that “a lot of people are interested in talking to us”, adding that the company’s management expects some outcome “in the near term.”

Mr Martin added – via a webcast from the Elan website – that the company is still confident of selling its drug delivery business EDT (Elan Drug Technologies) when markets pick up.

This deal, however, is not expected to be completed until after the overall strategic review is concluded.

Elan co-owns the successful multiple sclerosis drug, Tysabri with US pharma, Biogen Idec and is also co-developing an Alzheimer’s treatment – Bapineuzumab – with Wyeth.

Elan took on Citigroup Global Markets in January to conduct a review of strategic options, aimed at strengthening its balance sheet and raising finance.

The company has always maintained that an overall sale would be the least favourable option; instead preferring a strategic alliance of some sort.

However, a sale of the company to a range of potential suitors – from private equity houses to industry rivals (Bristol-Myers Squibb, Pfizer and Danish firm Lundbeck amongst them) – has been heavily rumoured in recent months, with Elan “refusing to comment on industry speculation” on each occasion.

Mr Martin said yesterday that a strategic transaction – either through a merger or some other form – should reduce Elan’s balance sheet risk and “go a fair long way to fully funding the pipeline through late 2011 and 2012.”

On the back of yesterday’s encouraging outlook from management, Elan’s share price – in Dublin – rose by 12c (2.14%) to close at €5.72, yesterday evening.