Elan CEO Kelly Martin to step down, but not for two years

Elan, the troubled Irish biotechnology firm that has witnessed considerable turbulence and extensive restructuring in recent years, is to part company with its oft criticized chief executive, Kelly Martin, but not for another two years, but even then he will have another year as adviser.

The drugmaker and Mr Martin have agreed to transition his employment contract from an open-ended agreement to a fixed term. Under this deal, Mr Martin will remain in his current roles as CEO and director of the company through May 1, 2012. It is envisioned that, on the completion of this fixed term, Mr Martin will then serve the board as executive adviser through January 31, 2013. At that time and after a decade of service to the company, he will have completed his commitment to the company.

Additionally, the adopted timeframe will enable Mr Martin and the Elan board of directors to conduct a comprehensive succession process, the company states. Elan's chairman, Kyran McLaughlin ' who is also stepping down once a successor is found (The Pharma Letter April 20), said: "Elan's Board is committed to long term leadership succession planning as it is an important part of good governance policies. The amendments to Kelly's employment arrangements are a necessary and desirable part of this commitment.'