Elan not for sale altho "approached consistently". Selling non-core stuff (hopefully) for more than you might think...
-----------------------
Elan’s Martin Denies Pfizer Talks; Sees License Deals (Update1)
By Trista Kelley
Jan. 9 (Bloomberg) -- Elan Corp. plans to raise as much as $500 million by licensing out experimental cancer drugs and isn’t negotiating to sell the company to Pfizer Inc. or any other drugmaker, Chief Executive Officer Kelly Martin said.
Elan is about “a third of the way through our process” of completing the licensing deals, which should be finished within four months, Martin said in an interview today at the drugmaker’s New York office. The proceeds “will put a dent in our debt” and fund the last stage of trials for Elan and Wyeth’s experimental Alzheimer’s therapy, bapineuzumab, he said.
“We want to show people we have options that mitigate our risk,” Martin said. The deals would include licensing six to 10 molecules that are mostly in the first phase of human tests needed for regulatory approval, he said.
Elan, based in Dublin, has $1.7 billion in debt, about $1.1 billion of which is due in 2011, Martin said. The company, maker of the Tysabri multiple sclerosis medicine, shelved plans last year to sell its EDT drug technology division amid the global credit crisis. The unit was valued at about $1 billion, he said.
Elan rose 6 percent to 6.36 euros in Dublin trading, its highest price in more than two months. Ian Hunter, an analyst at Goodbody Stockbrokers Dublin, attributed the rise to speculation that New York-based Pfizer, the world’s biggest drugmaker, may buy the Irish company.
Elan is “approached consistently” by suitors, Kelly said. Still, the company isn’t talking with Pfizer or any other drugmaker about a potential acquisition, he said.
Martin affirmed Elan’s earnings forecast for its report of 2008 earnings. The company reports fourth-quarter 2008 results on Feb. 11.
“As long as the markets are where the markets are,” Martin said, “then we need to reduce the 2011 debt obligation over the first six months of this year.” |
