Elan Corporation, plc has decided to explore the possibility of a separation of its Elan Drug Technologies (EDT) business. If executed, any transaction would create two distinct publicly listed companies: Elan BioNeurology and EDT, with each entity being a leader in its field of expertise. The purpose of this exploration is to accurately assess the opportunity and impact on shareholder value.

On an operating basis, both EDT and BioNeurology are now profitable. Each represents vastly different investment propositions, and each generates distinct and on-going capital requirements for utilization against a broad array of potential opportunities. The company’s review will include detailed assessment of the possible separation, including timing, market conditions, and the impact on all of its key constituencies. The company expects to make a decision whether to proceed in the coming months. No specific timetable has been set for completion of the review, and there can be no assurances that such a transaction will take place.

Separately, Kyran McLaughlin, the Chairman of the Board, has informed the Board of his intention to retire as Chairman. The Board has authorized a search for a new Chairman and has appointed Dr. Dennis Selkoe, a founder of Athena Neurosciences, to oversee the search process in conjunction with the Nominating and Governance Committee. Mr. McLaughlin will continue to serve as Chairman until a successor is appointed.

Under Mr. McLaughlin’s exceptional leadership, Elan has made significant and fundamental business strides and has emerged a stronger company. The company has greatly reshaped its balance sheet, simplified its operations, and aligned its resources. Elan now has an industry-leading drug delivery business as well as a leading neurology-based biotechnology company. In addition, Mr. McLaughlin provided invaluable leadership during the company’s strategic review that ultimately culminated with the September 2009 Johnson & Johnson transaction, which IN VIVO has hailed as a Deal of the Year for 2009.

“On behalf of the entire Elan Board of Directors, we thank Mr. Kyran for his leadership and commitment to Elan throughout the past 5 years as Chairman, and are greatly indebted to him for providing the guidance necessary to advance the business and the company overall,” said Lead Director Kieran McGowan. 

The company also announced the resignation of Bill Rohn from the Board. Chairman Kyran McLaughlin thanks Mr. Rohn for his nearly 4 years of dedicated service to the company and wishes him well in all of his future endeavors. The company does not plan to make further announcements on either the possible separation of EDT or the new Chairman search process until a final decision by the Board has been made in each case.

Elan Corporation, plc is a neuroscience-based biotechnology company committed to making a difference in the lives of patients and their families by dedicating itself to bringing innovations in science to fill significant unmet medical needs that continue to exist around the world.