Elan again mulls hiving off its drug delivery business as separate unit; chairman to retire

Having previously failed to do so in 2008, Ireland-based drugmaker Elan Corp says it is again exploring the possibility of a separation of its Elan Drug Technologies (EDT) business. If executed, any transaction would create two distinct publicly listed companies: Elan BioNeurology and EDT, with each entity being a leader in its field of expertise.

The purpose of this exploration is to accurately assess the opportunity and impact on shareholder value, commented Elan. On an operating basis, both EDT and BioNeurology are now profitable. Each represents vastly different investment propositions, and each generates distinct and on-going capital requirements for utilization against a broad array of potential opportunities.

The company's review will include detailed assessment of the possible separation, including timing, market conditions and the impact on all of its key constituencies. The Company expects to make a decision whether to proceed 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.