Elan to consider strategic alternatives including possible sale

By Lisa Kerner and Jennifer Lanning Drey

Charlotte, N.C., and Portland, Ore., Jan. 13 - The board of directors of Elan Corp., plc will review strategic alternatives for the company with the assistance of Citigroup Global Markets Inc., according to a company news release.

Elan said alternatives could include a minority investment or strategic alliance, a merger or a sale.

Board chairman Kyran McLaughlin said Elan recently completed its annual review of the company's scientific capabilities, clinical portfolio and commercial opportunities in Alzheimer's, Parkinson's and multiple sclerosis.

"Given our many scientific, clinical and commercial opportunities and the capabilities of the industry participants that surround us, the board of directors has determined that this is an appropriate time for the board to explore potential alternative paths forward for the company," McLaughlin said in the release.

"Our goal is to provide Elan with the financial wherewithal to take this portfolio and expand it into other things and [to provide] operational access on a global basis for the commercialization of parts of this portfolio and other things that we anticipate coming forward," Elan chief executive officer Kelly Martin said during a Tuesday investor presentation.

Speaking at the JPMorgan Healthcare Conference in San Francisco, Martin said Elan would look to remain a relatively small company and leverage global overcapacity and commercial infrastructure through the review.

"We hope the process will allow us, with our adviser Citigroup, to have a number of different options to consider in the coming months," Martin said.

Elan, a Dublin-based biotechnology company, will release additional information when the review process is completed or when it enters into a definitive agreement.

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