Elan, the Irish drugs firm that is co-marketing the MS drug Tysabri with US biotech firm Biogen Idec, announced today that the Board of Directors has engaged
Citigroup Global Markets. to conduct, in conjunction with executive management and other external advisors, a review of the Company's strategic alternatives. The goal is to secure access to the necessary financial resources and commercial infrastructure to allow Elan to accelerate the development and commercialization of its extensive pipeline and product portfolio while maximizing the ability of its shareholders to participate in the resulting longer term value creation. The range of alternatives that will be assessed could include minority investment or strategic alliance, a merger or sale.
If Elan is sold, it will be another Irish-linked knowledge economy company, that will not have grown to a scalable world-class level, before being acquired overseas.
"We recently concluded our annual review of the Company's scientific capabilities, clinical portfolio, and commercial opportunities in Alzheimer's, Parkinson's, and Multiple Sclerosis. Our progress to date has been significant. 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," stated Kyran McLaughlin, Chairman of the Board of Directors.
Elan said the company is committed to completing its review of potential alternatives as promptly as practicable. However, there can be no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms. The Company does not plan to release additional information about the status of the review of alternatives until a definitive agreement is entered into or the process is otherwise completed.
Elan said last October that Tysabri is fast approaching blockbuster status, defined in the industry as revenues exceeding $1 billion a year. At the end of September, about 35,500 patients were using Tysabri worldwide.
Elan was founded in Ireland in 1969 as a drug-delivery business, by American chemist Don Panoz, to facilitate the development of the technology behind the nicotine patch.
The late Donal Geaney joined the company from KPMG in 1987 and, by 1995 had become chief executive. In 1996, Geaney acquired a small Californian biotech company named Athena Neurosciences in an all-stock deal. Research being undertaken by Athena provided the starting point for both the multiple sclerosis (MS) and Alzheimer's programmes on which Elan has since built its business.
It has been a roller-coaster ride for shareholders as problems with drug trials and questions about accounting practices have created a very volatile share price record over the past decade.
