Elan considers split in bid to boost shareholder value
Elan may separate its drug technologies unit and create two publicly listed companies.
Elan is looking at a possible split “to accurately assess the opportunity and impact on shareholder value,” the drugmaker said in a statement today.
The Dublin company has also begun the search for a replacement for Chairman Kyran McLaughlin, who has decided to retire.
The maker of the Tysabri multiple sclerosis medicine, which last year sold a stake to Johnson & Johnson, reportedly postponed the sale of the Drug Technologies unit in 2008 because of the lack of financing in the debt markets.
Elan said today it expects to make a decision on the possible split in the “coming months.”
Elan Drug Technologies, which focuses on drug delivery, and the remaining BioNeurology business are both profitable, though “each represents vastly different investment propositions,” the company said in the statement.