Elan suspends plans to sell off its Athlone facility

For the second time in three years Elan announced that unfavourable market conditions have caused it to suspend plans to spin off its Athlone-based Elan Drug Technologies (EDT) division. The pharmaceutical firm revealed in April that it was exploring the possibility of separating EDT from the other, bioneurology, side of the company. This could have resulted in either EDT becoming a separate, publicly listed company or being sold off. However, on Monday, Elan announced that, while "it makes strategic and financial sense" to separate EDT from the bioneurology business, the market conditions were not conducive at this stage. As a result, the company stated that it "has determined it will not start a process to pursue a separation of the EDT business at this time." Elan previously tried to sell the EDT business in 2008 but at that stage the sale was put on hold because of "uncertainty" in the financial markets. In its statement this week, Elan said it was satisfied with the performance of EDT, which is based in Monksland, Athlone, but also incorporates facilities in Philadelphia and Georgia. It highlighted in particular the launch this year of the multiple sclerosis drug Ampyra, which is manufactured at the Monksland plant. "Elan is pleased with the strong performance of the EDT business and is particularly pleased with the solid launch of Ampyra, a product which Elan has licensed to Acorda and which has significant potential," it said. "Elan will continue to focus on growing the EDT business in terms of revenues, profits, and cash flow. "Through advancement and expansion of its extensive clinical pipeline and technology offerings, Elan is committed to consolidating its position as the world's leading drug delivery business."