Shares in troubled Elan tumbled again today, despite announcing management changes aimed at restoring investor confidence. The shares had slipped €1 to stand at €7.23 by the close - a fall of 12%.
Earlier this morning, the pharmaceutical company announced a management shakeup as part of a plan to revive its share price, which has fallen 85% in recent months. The firm has been under fire from investors for its complicated network of joint ventures, whose debt levels have frightened some shareholders.
Elan said that its Executive Vice Chairman Tom Lynch would be assigned full time to deal with the Securities and Exchange Commission's inquiry. He will also deal with shareholder litigation. Elan said he would 'take responsibility for these matters and aim to resolve them as expeditiously as possible'.
Timothy R Wright, who had led Elan's global sales and marketing efforts, will also take on sales in the marketing in the US - the company's most important market.
Lars Ekman will assume full responsibility for all research and development activities within Elan, other than R&D at the King of Prussia site in Pennsylvania.
Shane Cooke, in addition to his role as Chief Financial Officer, will directly manage all operational finance activities through a single, consolidated finance function.
Seamus Mulligan will be responsible for Elan Enterprises. News of the establishment of the new standalone unit was announced earlier this week. He will also be in charge of global business development and planning for the company.
Biopharmaceutical division president Dan Welch is to leave the company to 'pursue other interests,' the company statement said.
'I am confident that the structure of the new Elan and Elan Enterprises will enable us to implement our action plan and to focus on core areas that will drive the future growth of the company,' Chairman and CEO Donal Geaney said.
