Elan sells European business

Elan Corporation has announced that it has agreed to sell its European sales and marketing business to Medeus UK Limited, a new UK pharmaceutical company backed by Apax Partners Funds.

Under the terms of the agreement Elan will receive approximately US$120m. Elan also said that it was retaining its operations in Athlone, Ireland and its research and development operations in Stevenage, UK and that it separately anticipates selling certain rights to two products in the UK and Ireland for approximately $10m.

Kelly Martin, Elan's president and chief executive officer, said: 'Divesting these operations is consistent with our strategy of focusing on areas that are essential to our future and enables us to tailor our European sales and marketing efforts toward our pipeline products. We are also pleased to note that individuals who have contributed to our sales and marketing success in Europe will have an opportunity to continue to contribute as employees of Medeus UK Limited.'

The transaction includes the divestment of its sales and marketing operation in the UK and 100% of the equity in Elan sales and marketing affiliates in Germany, France, Spain, Italy and Ireland.

Apax Partners is a leading international private equity firm, and Apax Partners Funds has a successful track record of early and later stage healthcare investments. The transaction is subject to regulatory approvals, third party consents and other customary conditions, and is expected to close during the first quarter of 2004.