Irish drugmaker Elan has temporarily shelved plans to spin off its drug delivery division due to unfavourable market conditions.
Elan, in which Johnson & Johnson has an 18 per cent stake, also reaffirmed its financial outlook for this year and announced a move to restructure its debt..
The company said it still plans to eventually sell the drug delivery unit, Elan Drug Technologies, but said market conditions are not conductive to an appropriate valuation.
The company first tried to sell the business in 2008, but failed after the economic crisis led to a financing drought.
Elan said it plans in the near term to retire up to $500 million in debt due in November 2011 and November 2013 through a combination of cash on hand and refinancing.
For this year, the company said it still expects year-over-year revenue growth and adjusted earnings before interest, taxes, depreciation and amortisation of more than $150 million.
It expects to end the year with close to $400 million in cash and investments, after the debt repayments.
The company posted a loss of net loss of $213.1 million for the quarter ended June 30th, contributing to a net loss of $215.1 million for the first six months of 2010.
