Elan is to begin the process of finding a buyer after the company said it had received a number of expressions of interest.
The Irish biotech company, which is currently the target of a hostile bid from investment firm Royalty Pharma, said its board and management aimed to maximise "the full value potential of the business on behalf of its shareholders".
In a statement, Elan’s board urged shareholders not to engage with Royalty’s current bid, but said the US company was invited to participate in its formal sales process "if they so wish".
Shares in the company jumped by 8.7% to €9.29 following the announcement.
In February, Elan announced plans to sell its interests in multiple sclerosis treatment Tysabri in return for $3.25 billion and royalties from future sales of the drug.
Royalty Pharma made its first bid for the company shortly after that, however Elan's board has rejected its approach on a number of occasions.
Meanwhile, the company also announced plans for a number of investments and acquisitions which were seen as defensive measures against the Royalty bid.
An Emergency General Meeting has been scheduled for Tuesday, at which shareholders would be asked to vote on the company's four proposals.
Royalty's latest bid, which offers $13 in cash per share along with a clause that could see that increase by $2.50, is contingent on shareholders rejecting all four of these proposals however the US company has since sought to change this condition.
This request has been blocked by Ireland's Takeover Panel, however Royalty yesterday received an injunction which may allow it to challenge the decision in the High Court.
