Elan sells Athlone drug unit in $960m cash and equity deal

ELAN has agreed to sell its Athlone, Co Westmeath- based drug delivery unit EDT (Elan Drug Technologies) to US firm Alkermes for nearly $1 billion in a cash and equity deal.

The $960m (€667m) deal will safeguard EDT’s 450 employees in Athlone and help Elan paydown its debt and, as planned, fully focus on its main bioneurology business, which is led by its successful Tysabri multiple sclerosis drug.

While approval is needed from both the US regulators and Alkermes’ shareholders (Elan’s shareholders don’t have to vote on the matter) the sale is likely to be concluded by the end of the third quarter or the start of the fourth quarter.