Elan has sold the rights of Abelcet, its treatment for fungal infections, to Enzon for $370 million. The deal is Elan's first major disposal as part of its stated plan to raise $1.5 billion through asset sales.
The deal gives Enzon the facilities needed to develop, manufacture, sell and market Abelcet in the US, including a manufacturing plant in Indianapolis, Indiana.
Under the deal, Enzon will play Elan $370 million in cash once the deal closes, including about $30 million for the Indiana plant. A 60-person sales force from Canada and the US is also part of the agreed deal.
Enzon said it expects Abelcet to improve its results by the middle of next year by adding about $50 million in product sales and €20 million in earnings.
Abelcet is used in hospitals to treat patients with fungal infections from cancer, organ transplantation and other conditions.
Elan shares rose by 16 cent to €1.50 in Dublin after losing almost 35% of their value yesterday.
* There are reports that Elan is considering an exit from the pain treatment business with a sale of its four main medications. A Reuters report quoted a source close to the company as saying that Elan was still determining if pain treatment was a core activity.
