Elan accepts report recommendations

High Court proceedings involving biotech firm Elan and two of its directors have been suspended after the company accepted the recommendations of a report into allegations of breaches of corporate governance.

The report was drawn up by legal firm McKenna Long and Aldridge, which has previously worked with Elan on a separate review of corporate governance.

It looked at allegations by two directors Vaughn Bryson and Jack Schuler that Elan had breached corporate governance in a number of transactions conducted over the past year.

The report found no legal breaches or other wrongdoing by management at the biotech firm, its board of directors or its advisers.

Last week, Elan was granted a High Court injunction after it learned the two men planned to take court proceedings in the US with regard to the same matters being addressed by the McKenna Long inquiry.

In a statement this morning, Elan said it had approved the McKenna report in full and accepted its recommendations, including considering the feasibility of voluntarily complying with US domestic reporting requirements and adopting a “best practices” conflicts policy.

Mr Schuler and Mr Bryson are to step down from the board within the next 90 days.