Elan Plans to Leave Certain Businesses

Elan Corp., a Dublin-based drug maker whose shares have declined 88% in the last year, plans to exit from businesses and cut its locations by half in response to investor pressure, the Sunday Times reported, citing Chairman and Chief Executive Donal Geaney.

Elan today will say it plans to focus on two of its five product areas, neurology and pain killers, and quit acute care, cancer treatment and dermatology, the newspaper said. It will pare locations to 16 from 32, and unwind many of its 55 research joint ventures, the Times said.

“Investors told us that they want a simpler, clearer structure,” Geaney told the paper. “Our plans are not as big as they were a year ago, but this is a much harsher environment for everyone.”

Geaney didn’t return calls seeking comment on the report.

Elan, already facing declining profit and an accounting probe by U.S. regulators, is selling some investments to help pay about $3 billion in debt, analyst David Maris of Credit Suisse First Boston said last week. Elan said Thursday it has enough cash to finance operations and meet obligations.