Elan to shut offices, cut 114 jobs to boost drugs investment

Ireland’s largest drugmaker Elan plans to cut 114 jobs and close its offices in New York and Tokyo to put more investment into its drug pipeline.

A company spokeswoman said the changes would have "no impact" on Elan's operations in Ireland but would see 114 people leave the company.

Elan expects the changes to generate between €20 to €25 million in cost savings per annum and hopes to have the process completed by early in 2009. Elan employs 1,700 people worldwide.

Chief executive Kelly Martin said the company was making the changes to ensure its product portfolio and company structure was able to invest in the most valuable product opportunities for patients and generate value for shareholders. 

Davy analyst Jack Gorman described the initiative as positive and expects the cost adjustments to be incorporated into Elan's 2009 guidance. At 11.34am Elan shares were down over less than 1 per cent at €5.36.