Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Qualified Opinion who wrote (3266)	9/30/2002 12:54:47 PM
From: Icebrg	Read Replies (3) \| Respond to of 10345

Rob 1. The QSPEs were a structured way to raise capital. Nothing wrong with that. The risk was that the value of the assets might fall. They have. 2. I know they managed to get out of Autoimmune at decent terms. But it was wrong to raise further capital in this leveraged way when the company was already too leveraged through other arrangements. 3. The problem with the j/vs was not the licence fees. As I have already pointed out. The problem was Elan's commitment to fund a part of these projects for the next 5 to 10 years. As most of the partners were (and are) short of cash, there was a commitment there which Elan evidently was not equipped to handle. We are seeing the results now. There is also a point 4. The LYONS and all the problems they are giving us now. Their put-option is in my opinion the main reason why the company's ADRs are trading at around 2 dollars. Each and every of these arrangements can be defended on its own merits. But when put together they have put too big a stress on the company. I do believe that Elan will come through their problems, but the cost will be substantial in the form of assets lost and opportunities missed. Ice