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

To: Icebrg who wrote (1398)	1/16/2002 6:08:06 AM
From: Icebrg	Read Replies (2) \| Respond to of 10345

Elan and Xcel Some more information trickling in. Biocentury notes the following. If Xcel prices, the event would make for record timing on its exit strategy. The company was founded last January by former executives of Elan (ELN) and Dura (DURA), which was acquired by ELN in 2000 for $1.5 billion. Xcel quickly in-licensed seizure therapies Diastat and Mysoline from ELN for $150 million, of which $99 million was borrowed from ELN. Xcel wants to raise up to $97.8 million through Salomon Smith Barney; Merrill Lynch; ABN Amro Rothschild; and Thomas Weisel Partners. ELN, which owns 16.2%, plans to purchase an undisclosed amount of Xcel common at the IPO price. Domain Partners and New Enterprise Associates now own 28% and 27% of Xcel, respectively. Perhaps they should change the name of the company to Xpel as most of the management as noted seems to have a background at Dura or some other type of ELN-connection (Ligand, Athena). I suppose, that Elan felt that sales from the two products would be too marginal to defend a place in Elan's product line-up. Perhaps the transaction should really be regarded as a spin-off more than anything else. The price paid by Xcel for the two products seems very steep to me, even if most of it was financed by Elan in the form of a loan and equity participation. Ice