UPDATE 1-Elan says market will not sink EDT spin-off again
Says under less financial pressure this time around
Global financial crisis scuppered 2008 attempted sale
(Adds quotes from executives, shares)
DUBLIN, May 27 (Reuters) - Irish drugmaker Elan said market instability would not sink a second attempt to spin off its Elan Drug Technologies (EDT) unit after it failed to sell the drug delivery division in 2008 for that very reason.
The sale of EDT, which analysts said could be worth close to $1 billion, was scuppered at the height of the global financial crisis. Elan said its latest plan -- to form two separate companies of BioNeurology and EDT - was not driven by the same financial pressure nor was it as time-sensitive after Johnson & Johnson invested $885 million for an 18.4 percent stake in the company last year.
"When we looked at this in 2008, it was more financially driven. We didn't have the financial resources that we now have having done the transaction with Johnson & Johnson," Chief Financial Officer Shane Cooke told a news conference after a shareholder meeting on Thursday.
"The focus this time is more on strategic benefits, therefore it is not something you have to do in a certain time frame because of a financial obligation."
Shares in Elan, the co-marketer of blockbuster multiple sclerosis drug Tysabri, fell 1.2 percent to a seven-month low of 4.20 euros by 1120 GMT.
Chief Executive Kelly Martin said the Dublin-based company had so far had "almost universally" positive discussions with 50 investors, including hedge funds, mutual funds, pension funds, and he estimated that any move would happen over the next 12 months. "This is a multi-month process, we can't really time the IPO market. We presume that the markets will have stability some time in the future, whether it's three weeks from now or three years from now," Martin said.
"Obviously it doesn't help when we're talking to them (investors) that screens are red with huge, negative numbers."
Elan announced last month that Kyran McLaughlin would retire as chairman and McLaughlin said he expected a replacement to be chosen by September or October. (Editing by Jon Loades-Carter)
REUTERS
