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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: William Partmann who wrote (1397)	1/11/2002 9:13:11 AM
From: Icebrg	Read Replies (1) \| Respond to of 10345

Bill - Elan and Xcel It would be interesting to know if any cash changed hands in that loan transaction. Or if the full amount of almost 100 mUSD represents the purchase price Xcel had to pay for Diastat and Mysoline. Still, there is a lot of involvement from Elan's side in Xcel. 1. Extension of 99 mUSD in long-term debt. 2. Elan's current shareholding of 16,2 % 3. Elan's "promise" to participate in the IPO. 4. Elan's provision of a credit line of 10 mUSD, which Xcel say they are going to utilize very quickly. Let's hope for Xcel's and Elan's sake that the IPO is successful. And all this for a company with full-year sales of almost 6 mUSD. Sure, they are still in start-up mode, but anyhow. There must be other considerations behind Elan's engagement. Elan could have sold the rights to these products to someone who could pay for them, but instead they entered into this strange arrangement. They surely like to get involved at Elan. I am normally very much in favour of Elan's engagements in small companies with potentially promising technologies. That is actually one of the reasons, I have taken a position in the company. But the Xcel arrangements simply do not make any sense to me. Ice