Elan receives $100 million from US company

Elan Corporation has received payment of $100 million from Ligand Pharmaceuticals, Inc as part of an agreement with the US company…

Elan Corporation has received payment of $100 million from Ligand Pharmaceuticals, Inc as part of an agreement with the US company which will help finance a reduction of Elan's debt.

The proceeds from the agreement will go towards the $1.5bn Elan is trying to raise in order to cut its debts.

Elan's financial position is dependent on a number of factors, including its asset program, its balance sheet restructuring, its debt service requirements and its future operating cash flow.

In addition to measures already taken Elan may seek to raise additional capital by restructuring or refinancing its debt or through repurchasing its equity securities or outstanding debt.

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Elan shares trade on the New York, London and Dublin Stock Exchanges.

The company has lost some 95 per cent of its value in the last year over concerns about its accounting practices and large debt.