Elan To Close Pennsylvania Site Ahead Of Unit Sale To Alkermes
July 12 2011 - 10:09AM
Dow Jones News
Elan Corp. PLC (ELN) plans to close a suburban Philadelphia
facility employing at least 104 people, a move Elan says is related
to the $960 million deal to sell its drug-technology unit to
Alkermes Inc. (ALKS).
Dublin-based Elan, which co-markets the multiple-sclerosis drug
Tysabri with Biogen Idec Inc. (BIIB), said it will close its King
of Prussia, Pa., site by the end of September and transfer current
projects and technology capabilities to other locations.
The decision to close the site followed a "comprehensive review"
of the combined businesses of Alkermes and Elan Drug Technologies,
said Niamh Lyons, an outside spokeswoman for Elan.
The closing affects 104 workers, according to the website of the
Pennsylvania Department of Labor and Industry. Elan's work force,
before the close of the sale to Alkermes, is about 1,150.
Elan uses the King of Prussia site for research and development,
manufacturing, sales and administration, according to an Elan
filing with the U.S. Securities and Exchange Commission. In 2009,
its lease for the site was extended to between April 2019 and May
2020.
In May, Elan agreed to sell its drug-technology unit, which
develops drug-delivery mechanisms, to Alkermes, Waltham, Mass., for
cash and shares then valued at about $960 million.
Elan plans to use the proceeds to pay down its debt, improve its
capital structure, and hone its focus on neurology therapies.
The deal is subject to approval by Alkermes shareholders. An
Alkermes spokesman couldn't immediately be reached.
--By Peter Loftus, Dow Jones Newswires; +1-215-982-5581;
peter.loftus@dowjones.com
--Sten Stovall in London contributed to this article.
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