S&P: Elan view now stable

Standard & Poor's said it revised its outlook on Elan Corp. plc to stable from positive and affirmed its ratings on Elan and its subsidiaries, including its B corporate credit and senior unsecured ratings and CCC+ subordinated debt rating.

S&P said the rating actions are in response to Elan's and its marketing partner, Biogen Idec Inc.'s, announcement that they were halting the marketing of Tysabri, a promising new multiple sclerosis treatment, due to two serious adverse events affecting patients being treated with a combination therapy consisting of Tysabri and Biogen Idec's multiple sclerosis treatment, Avonex. Both adverse events involved patients, one confirmed fatal and one suspected, who developed progressive multifocal leukoencephalopathy, a very rare and usually fatal disease.

Elan and certain subsidiaries guarantee the $1.15 billion in recently offered senior unsecured notes by Elan Finance. They also guarantee the existing 7.25% senior unsecured notes of wholly owned subsidiary Athena Neurosciences Finance LLC. A portion of the proceeds from the Elan Finance offering was used to tender for $351 million of the $390 million of EPIL III notes.

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