Elan completes recovery plan ahead of target

Pharmaceutical company Elan Corporation, has announced the completion of the sale of its European sales and marketing business to Medeus Pharma, a new UK pharmaceutical company backed by private equity firm Apax Partners Funds.

Elan has raised around $120m (€93.7m) from the sale, which was first announced in late December.

180 Elan workers will be transferred to Medeus Pharma under the deal.

Separately, Elan expects to complete the sale of certain rights to two products in the UK and Ireland for approximately $10m (€7.8m) during the first quarter of 2004.

Elan said the announcement marked the formal conclusion of its recovery plan, initially announced in July 2002, and which involved the restructuring of its businesses, assets and balance sheet. The company said the plan had raised proceeds of more than $2bn (€1.56bn), ahead of the target of $1.5bn (€1.17bn).

Kelly Martin, Elan president and CEO, said, "The success of our recovery plan returns Elan to a position where the focus is on our people, our science and our commitment to patients. We are excited about optimising our science and business plans, creating value for our shareholders, and focusing on therapies that will help millions of patients and their families."

Elan shares trade on the New York, London and Dublin Stock Exchanges.