Troubled pharmaceutical company Elan has agreed to sell its majority-owned Athena Diagnostics division to private equity firm Behrman Capital for $122 million, the two companies announced on Friday. Elan owns 80% of Athena.
The Athlone-based firm will realise $82 million in cash after giving effect to certain contractual payments and payments to other stockholders of Athena. The company provides lab testing services in the field of neurology.
The deal is expected to close in the first quarter of 2003, subject to regulatory approvals and other closing conditions.
The proceeds from the deal will be used for Elan's recovery plan. The company, which has over $3 billion in debt, has been selling assets and has set a target to raise $1.5 billion by the end of next year.
Elan agreed to sell the US, Canadian and Japanese rights to its antifungal treatment Abelcet to Enzon for $370 million in October. It also sold its cancer pain treatment, Actiq, to Cephalon for $50 million.
