Elan plans to retire $500 million of debt; says time not right to sell EDT; updates on Alzheimer's drug

Irish drugmaker Elan Corp announced this morning that it will retire up to $500 million in outstanding debt due to mature in November 2011 and November 2013, through a combination of cash on hand and proceeds of a contemplated refinancing.

It also said that the recent review of its operations concludes that it makes strategic and financial sense to sell the Eland Drug Technologies (EDT) business, but current market conditions are not conducive to an appropriate valuation and so they will not look to sell at this stage.

Kelly Martin, chief executive of Elan, said: 'Our solid balance sheet, revenue growth and ability to generate cash enable us to focus on developing one of the premier neurodegenerative pipelines in the industry. We will continue to do this primarily through our prudent and proven collaborative approach that allows us to reduce the substantial financial investment and execution risks associated with developing new therapies, while enabling our shareholders to participate in the significant value that is created if the therapies are successful.'