Elan receives waivers from bond holders

Pharmaceutical company Elan has received waivers from some of its bond holders preventing them from demanding immediate repayment of some of the company's debt. The waivers are effective to August 8, 2003.

Today was the last day for the company to file its 2002 annual report with the Securities and Exchange Commission (SEC) in the US.

This had already been delayed by an investigation into the accounting treatment of some of Elan's Pharmaceutical investments, known as EPILs.

Elan says it is working to file its report as soon as possible. It has also said that its results for 2001 and 2002 are likely to be restated as a result of the investigation.

Earnings per share for 2001 will be cut from US 95 cents to around 75, while 2002 losses per share will be cut from around $6.87 to $6.69. This impact is less severe than analysts had anticipated.

There had been fears that the delay in filing with the SEC could trigger demands from other holders of Elan debt. Shares in Elan were up six cents to €3.96 this afternoon in Dublin.