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

To: arnie h who wrote (1400)	1/17/2002 11:48:46 AM
From: Icebrg	Read Replies (2) \| Respond to of 10345

Arnie >>Products that do not meet these criteria ($100-500 Mil revenue) have been rationilised through a variety of structures from disposal to distribution agreements>> Yes, that is most probably the reason. I have seen similar moves by other companies. It doesn't make sense to them to work with "marginal" product lines. What disturbs me is that the drugs have been shifted to a company run by persons, who almost to a man are ex-officers of Elan. On the other hand the price they had to pay for the two drugs seems high to me. But what do I know. And on the third hand. Even if they paid a high price to get control over the drugs, most of the funds they needed was lent to them or invested in their new company by Elan. So, cashwise my guess is that not too much immediately came to Elan. It would of course have been better if the drugs had been sold directly to an unrelated third party for a cash payment. I guess that we will only know in a couple of years time, if this was a good move by Elan or not. If Xcel does well and manages to create value for its shareholders the transaction might turn out to have been very positive for Elan. And vice versa. Ice