Pharmaceutical company Elan has said market instability will not sink its attempt to spin off its Elan Drug Technologies (EDT) division.
The sale of EDT, which analysts said could be worth close to $1 billion, was previously scuppered at the height of the global financial crisis.
Elan said its latest plan - to form two separate companies of BioNeurology and EDT - was not driven by the same financial pressure nor was it as time-sensitive after Johnson & Johnson invested $885m for an 18.4% stake in the company last year.
'When we looked at this in 2008, it was more financially driven. We didn't have the financial resources that we now have having done the transaction with Johnson & Johnson,' chief financial officer Shane Cooke told reporters after a shareholder meeting this morning.
'The focus this time is more on strategic benefits, therefore it is not something you have to do in a certain time frame because of a financial obligation,' he added.
Chief Executive Kelly Martin said the company had so far had 'almost universally' positive discussions with 50 investors, including hedge funds, mutual funds, pension funds. He estimated that any move would happen over the next 12 months.
