Elan's former chairman, Garo Armen, has cashed in 200,000 shares in the biotech group for a profit of more than $880,000 (€719,000).
Dr Armen is the second Elan director to exercise options and then sell some or all of the shares into the market in the past week. Chief financial officer Shane Cooke exercised options over 413,000 shares two days ahead of Dr Armen's transaction, selling 163,000 back into the market for a profit of more than $450,000.
Both transactions were carried out on the New York Stock Exchange and later notified to the Irish Stock Exchange. Although Elan has its headquarters in Ireland, most of its business and dealing in its stock takes place in the United States.
The dealings come as Elan and its partner Biogen Idec prepare to meet the US regulator, the Food and Drugs Administration (FDA), in an effort to have their breakthrough multiple sclerosis drug, Tysabri, returned to the market. Tysabri was voluntarily suspended last February after it emerged that two trials patients had contracted a generally fatal neurological condition while taking the drug.
The companies have recently concluded a review of patient data and are hopeful of a return to market, albeit with strict conditions.
The spate of director dealings also follows revelations that chief executive Kelly Martin has negotiated an enhanced severance package in the event of a change in control at the company - a deal that has triggered opposition from corporate governance specialists and concern from the Irish Association of Investment Managers.
Dr Armen, who took over as executive chairman at Elan following the collapse of the shares amid post-Enron concern over its accounting practices, stood down at the start of this year. He charted the restructuring of the company that saw it sell off most of its assets to protect the Tysabri programme and separate research into Alzheimer's disease.
He and Mr Cooke, who was appointed to the board last May, are the only directors to have sold Elan shares this year.
The shares, which were trading at close to $30 ahead of the suspension of Tysabri, hit post-crash highs of $9 earlier this month.
Dr Armen continues to hold 270,000 shares in the Irish biotech group and also has options over a further 875,000 shares in the company at an average price of around $4.40 a share.
