Elan Corporation says it is considering the possibility of spinning off its Elan Drug Technologies business.
The company says that if it goes ahead, the move would create two distinct publicly listed companies - Elan BioNeurology and EDT.
Elan says the idea is being explored to accurately assess the opportunity and impact on shareholder value. On an operating basis, both sides of the business are now profitable.
A spokeswoman for Elan said that both BioNeurology and EDT divisions would continue to be based in Ireland. It currently anticipates that BioNeurology would continue to be listed on the Dublin and New York stock exchanges, while EDT would be listed on the Dublin and London stock exchanges.
It added that it expects to make a decision whether to proceed with the separation in the coming months.
'No specific timetable has been set for completion of the review and there can be no assurances that such a transaction will take place,' the company said in a statement.
Elan also said today that its chairman Kyron McLaughlin has announced he will retire from the firm. He will continue to serve as chairman until a successor is appointed. He has held the position for the last five years.
The company also announced the resignation of Bill Rohn from the Elan board.
Shares in Elan closed up 0.5% at €5.71 in Dublin. The company is due to report first quarter results on Wednesday.
