Pharmaceutical company Elan has announced that it is looking at ways to raise finance for the company going into the future. It has engaged Citigroup Global Markets to conduct a review of its 'strategic alternatives'.
Elan says it is looking at a range of options which include minority investment, a strategic alliance, a merger or a sale. But the company is stressing that a sale would at the moment be the least favoured option.
There was speculation last week that Pfizer, the world's largest pharmaceuticals concern, might be looking at the company but Elan's Senior Vice President for Corporate Relations Mary Stutts told RTE that the Citigroup review was not related to the Pfizer rumours 'at all'.
She added that an outright sale of the business was not the preferred option, saying: 'That's the last alternative quite frankly - that's not optimal.'
Last month, Elan announced plans to save $20 million to $25 million by shedding 114 jobs and closing its Tokyo and New York offices.
'Given our many scientific, clinical and commercial opportunities and the capabilities of the industry participants that surround us, the board of directors has determined that this is an appropriate time for the Board to explore potential alternative paths forward for the Company,' stated Kyran McLaughlin, Elan's Chairman, in a statement today.
Elan said it did not plan to release additional information about the status of the strategic review until a definitive agreement is entered into or the process is otherwise completed.
Partner says Tysabri growth slows
Meanwhile, Elan's partner Biogen has said the number of new patients taking the companies' multiple sclerosis drug Tysabri slowed in the fourth quarter compared to the third quarter amid concerns over its safety.
Biogen said the number of patients taking Tysabri rose about 6% in the fourth quarter to 37,600, up from 35,500 at the end of the third quarter. Biogen made its forecast to investors at the JP Morgan Healthcare conference in San Francisco.
The figures represent a slowdown compared to the growth rate in the third quarter, when the number of new patients rose 11.6% over the 31,800 reported in the second quarter.
Tysabri is considered critical to the growth of both companies. Growth rates have been slowing amid concern over the risk for patients of developing a potentially deadly brain infection known as progressive multifocal leukoencephalopathy, or PML. Tysabri was temporarily withdrawn from the market in 2005 after it was linked with PML but reintroduced in 2006 with stricter safety warnings.
Shares in the company closed up 12 cent at €6.08 in Dublin.
