PharmaGossip via an article from the Independent raises the question as to whether Elan is now a very attractive takeover candidate for Big Pharma now that it has sold its drug delivery business to Alkermes.
Elan now is a "pure" neuroscience play with potentially attractive programs at at multiple sclerosis, Alzheimer's and Parkinson's disease. It has also lowered its debt from about $770 M to only $270 M and has cash balances hovering around $500 M.
This should make it look a lot prettier to suitors and likely accounts for its stock increasing by 8% last week. Rumors suggest that J&J could be first in line as it already owns 50.1% of Elan's Alzheimer's unit to foot the rest of the bill to acquire it. Posted by Bruce Lehr May 16th 2011.