Elan has announced the completion of the sale of its European sales and marketing business to Medeus Pharma, a UK pharmaceutical company backed by Apax Partner Funds, for $120 million (€94 million). Siobhán Creaton reports.
The deal was announced in December 2003 and the sale marks the formal conclusion of its recovery plan announced in July 2002. The business employs 180 staff who will transfer to Medeus Pharma.
Separately, Elan expects to complete the sale of certain rights to two products in the UK and Ireland for approximately $10 million during the first quarter of this year.
The recovery plan involved the restructuring of its businesses, assets and balance sheet, and has raised more than $2 billion from the sale of various assets, which is ahead of its $1.5 billion target.
Yesterday, Elan president and chief executive Mr Kelly Martin said the company was excited about optimising its science and business plans.
"The success of our recovery plan returns Elan to a position where the focus is on our people, our science and our commitment to patients," he said.
Elan said the announcement also marked the end of operations for its Elan Enterprises business unit, which was created as part of the recovery plan and had focused on disposing of certain businesses and other assets, including business ventures and non-core pharmaceutical products.
It added that neither the completion of the recovery plan nor the dissolution of Elan Enterprises would preclude the company from considering future specifically targeted divestment and acquisition opportunities.
