Elan mulls business split

IRISH pharmaceutical company, Elan is re-examining the possibility of separating its Athlone-based Elan Drug Technologies (EDT) business from the main group.

An offloading of the profitable division was considered last year – before the company strengthened its finances by selling a controlling stake in its Alzheimer’s treatment business to Johnson & Johnson and an overall 18% stake in the group to the US healthcare giant.

However, Elan’s management has said onnumerous occasions in the past couple of years that the EDT business could benefit from increased funding levels. Yesterday’s announcement supports that, although no decision as to what option will be taken has been made.

In a brief statement on the matter, Elan’s management said: “The purpose of this exploration is toaccurately assess the opportunity and impact on shareholder value. The company expects to make a decision whether to proceed, in the coming months. No specific timetable has been set for completion of the review and there can be no assurances that such a transaction will take place.”

It is not known whether Elan received any expressions of interest for EDT last year, but the company said yesterday that a number of options are currently being considered, including a separate stock market listing for EDT.

The company said that if executed, any transaction would create two distinct publicly listed companies: Elan BioNeurology (which envelopes its Tysabri multiple sclerosis drug and its Alzheimer’s product) and EDT.

An Elan spokesperson added it is also anticipated that both divisions would continue to be based in Ireland.

Elan – which is due to report first quarter figures tomorrow – is also in the market for a new chairman, after announcing long-serving chairman, Kyran McLaughlin’s decision to retire.

Mr McLaughlin will remain in his post until a successor is found.