Elan is to scale back its business and improve corporate governance in an attempt to restore investor confidence in the troubled Irish pharmaceutical company.
Elan, under fire over its accounting practices, said today it would focus on its fully integrated pharmaceutical operations and three core therapeutic areas of neurology, pain management and the treatment of autoimmune diseases such as multiple sclerosis.
Elan said it would create a stand-alone business unit - Elan Enterprises - to optimise the value of its businesses and sell non-strategic assets, but the company was vague about where and when the axe would fall.
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Mr Donal Geaney retained his dual position as chairman and chief executive despite pressure to resign over his handling of the company during Elan's precipitous stock market slide.
"Our actions and the proposals submitted to shareholders should reassure them that Elan is committed to delivering on its promise and potential," Mr Geaney said in a statement.
Shares in Elan - until recently Ireland's biggest company by market capitalisation - have dived 85 per cent this year on controversy about its accounting practices and development setbacks for its much-vaunted Alzheimer's Disease treatment.
Elan shares were trading up 6.88 per cent at €8.55 this morning, after falling 25 per cent last week. The company has a market capitalisation of around €2.9 billion. A year ago it was worth almost €22 billion.
The company said it would strengthen its corporate governance practices by creating a lead independent director, a post to be filled by Mr Richard Thornburgh, a current Elan director and former US attorney general.
In its three key areas of neurology, pain management and autoimmune diseases, Elans said it would continue to pursue the acquisition of in-market products with sales potential of greater than $100 million for the US market and $50 million for the European markets.