Novartis Reportedly In Talks To Buy Certain Operations Of Elan
6/29/2009 2:24 AM ET
(RTTNews) - Swiss drugmaker Novartis AG (NVS: News ) is in talks to buy certain operations from Ireland-based biotechnology company Elan Corp. plc (ELN: News ,ELA.L: News ), the Sunday Times reported. The sale reportedly would include Elan's flagship- multiple sclerosis treatment Tysabri and its Alzheimer's disease pipeline.
Reports said that "well-placed source" confirmed the talks but added that the "complexity of the deal made a decision some way off".
Elan, which co-markets Tysabri with Biogen Idec Inc. (BIIB: News ), hired Citigroup Global Markets Inc. in January to conduct a review of a range of strategic business alternatives, which include minority investment or a strategic alliance, a merger or sale. Elan then had said that its goal is to secure access to the necessary financial resources and commercial infrastructure to accelerate the development and commercialization of its pipeline and product portfolio.
According to reports, Elan, on June 10, said that it expected to conclude a strategic transaction 'in the near term', after talking with a number of pharmaceuticals and biotechnology companies over the past few months.
Meanwhile, in February, Elan had stated that its ongoing restructuring plans would include elimination of about 230 jobs or about 14% of the company's global workforce, and that it would continue to operate in two divisions; Biopharmaceuticals and Elan Drug Technologies.
NVS closed Friday's regular trading session at $41.34, up $0.18 or 0.44%, on a volume of 1.2 million shares.
ELN settled at $7.36 on Friday, up $0.09 or 1.24%, on a volume of 2.2 million shares.
by RTT Staff Writer
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