A possible merger or sale are among the options currently being examined by Elan in order to secure the future of the company.
According to a statement released by Elan’s board of directors this week, the company has undertaken a review of its strategic alternatives, to be carried out by consultants Citigroup Global Markets Inc. in conjunction with management and other external advisors.
The range of alternatives that will be assessed include minority investment or strategic alliance, a merger, or sale.
The purpose of the review is to ensure that the necessary finance is in place for the company, which employs over 500 people in Athlone, to continue to develop its range of products.
“The goal is to secure access to the necessary financial resources and commercial infrastructure to allow Elan to accelerate the development and commercialisation of its extensive pipeline and product portfolio, while maximising the ability of its shareholders to participate in the resulting longer term value creation,” according to the statement from the board.
Elan recently conducted its annual review of the company’s scientific capabilities, clinical portfolio, and commercial opportunities in the areas of 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 to explore potential alternative paths forward for the company," stated Kyran McLaughlin, chairman of the board of directors.
The company has pledged to complete the review as promptly as possible. However, the board has refrained from confirming that any particular alternative would be pursued.
“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,” the statement concluded.
