Sunday 11 December 2016

Elan claims progress on financial position

Published 10/08/2010 | 05:00

ELAN said yesterday it was making continued progress on its ongoing efforts to maximise financial performance and strength, and to position its business for continued growth.

  • Go To

Kelly Martin, CEO of Elan, said: "The financial plans and strategic initiatives that we are announcing, combined with the news on the development of ELND005 that we have announced separately, underscore our unwavering commitment to building value for shareholders and developing our robust pipeline focused on neurodegenerative diseases.

"We continue to carefully manage both our balance sheet and cost structure to ensure that we remain financially strong."

Elan expects, in the near term, to retire up to approximately $500m in outstanding debt due to mature in November 2011 and November 2013, respectively, through a combination of cash on hand and the proceeds of a contemplated refinancing. If successful, these transactions would:

- Reduce gross debt by about 20pc from $1,540m to $1,240m. This approximate $300m reduction follows the early repayment of $225m of debt in September 2009, following the completion of the Johnson & Johnson transaction. This would bring the company's total debt reduction over the last 12 months to about 30pc.

- Reduce annual interest costs by between $5m and $10m.

- Extend the maturity profile of outstanding debt by providing for no required debt repayments until November 2013 and potentially reducing the amount of debt due in November 2013 by up to $190m, from $615m to $425m, through an asset sale proceeds offer required as a consequence of the 2009 Johnson & Johnson transaction.

Elan confirmed its financial guidance for 2010 and expects revenues to grow over 2009.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business