Elan Corporation plc
) recently decided to sell its remaining 7.8 million ordinary
) pursuant to Rule 144 under the US Securities Act of 1933. The
sale is expected to close on Feb 6, 2013.
In Mar 2012, Elan had sold 24.15 million shares, or 76% of its
stake in Alkermes. Excluding underwriter fees, Elan had recorded
net proceeds of approximately $381 million from the
Elan had acquired the shares of Alkermes in Sep 2011 following
the merger of its Elan Drug Technologies (EDT) segment with
Alkermes. The merged entity, known as Alkermes plc, is
headquartered in Dublin, Ireland. As per the terms of the deal,
Alkermes made a cash payment of $500 million apart from giving
Elan 31.9 million of its ordinary shares.
Following the divestiture of the EDT segment, Elan is focused
solely on the BioNeurology Division, which is driven by Tysabri
(natalizumab), the principal growth driver at Elan. Tysabri is
approved for the treatment of multiple sclerosis (MS) and Crohn's
disease and is developed in collaboration with
Last month, Elan along with Biogen submitted applications to
the US Food and Drug Administration (FDA) and the European
Medicines Agency (EMA) seeking to update Tysabri's label, as a
first line treatment for patients suffering from certain
relapsing forms of MS who have tested negative for antibodies to
the JC virus (JCV).
Elan recorded total Tysabri sales of $306.6 million, up 9.8%
year over year in the third quarter of 2012. We remind investors
that the company is set to report its fourth quarter and full
year 2012 financial results on Feb 6, 2013. The company expects
2012 revenue to be around $1.2 billion, in line with the Zacks
Elan carries a Zacks Rank #2 (Buy). However, other pharma
stocks such as
) carry a Zacks Rank #1 (Strong Buy). Meanwhile, Alkermes also
carries a Zacks Rank #1 (Strong Buy).
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