Elan's

"This allows us to reduce debt and have a lot of cash for investment in the research and development part of the business, which is key for Elan, and it allows us to take financial risk off the table and invest in our science and our assets in the intermediate term, which has been a long-term goal of the company," Elan's Chief Executive Kelly Martin said.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

Elan's debt has built over a number of years as the company has posted big losses and writedowns.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

Elan's Chief Financial Officer Shane Cooke , who is also currently head of EDT, will join the new holding company as president.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

Under the terms of the deal, Elan will get $500 million cash and 31.9 million ordinary shares in Alkermes PLC common stock while existing Alkermes shareholders will receive one ordinary share of the new company in exchange for each in Alkerms Inc. The pact contains a lockup, standstill and voting agreement for Elan's shares in Alkermes PLC.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

The market cheered Monday's news, pushing Elan's stock higher on the London Stock Exchange, and at 1237 GMT it was up 5.4%, or 29 euro cents, at €576 in Dublin.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

The move is Elan's latest attempt to draw a line under a troubled nine-year period that has seen it hammered by accounting problems and as the initial high hopes for blockbuster multiple sclerosis drug Tysabri were dashed by side effects of the medicine.

Elan Sells EDT Unit to Alkermes Sten Stovall 2011

An impairment charge of $5.1 million was also booked for the planned closure of Elan's King of Prussia, Pa., site by the end of September and transferral of current projects and technology capabilities to other locations.

Elan's Loss Narrows Sten Stovall 2011

Elan's new chief finance officer, Nigel Clerkin , said the sale will "transform Elan's balance sheet by moving us from net debt to net cash and investments."

Elan's Loss Narrows Sten Stovall 2011

Elan's Chief Financial Officer Shane Cooke said the company's bottom line was hit by the inclusion of a $107.7 million net gain related its transaction with Johnson & Johnson transaction in 2009.

Drug Maker Elan Swings to Loss Sten Stovall 2010

Berenberg Bank, which has a buy on the Irish drug maker, said in a note: "Elan's debt position will be significantly improved by this transaction, with the company potentially close to a zero net debt position by year-end 2011."

Elan Sells EDT Unit to Alkermes Sten Stovall 2011