Elan cuts 230 jobs as it waits for trial results

[industry_news]

There's more drama at Ireland's Elan today. The company said it would refine its business operations and lay off 230 employees in the U.S. and Ireland as part of its ongoing effort to "rigorously manage its overall cost base." The cuts will be divided evenly between Ireland, where Elan's biological manufacturing and related fill finish activities are based, and the U.S, which is home to most of the company's R&D efforts. The cuts will reduce Elan's operating expenses in 2009 by $30 to $35 million and by approximately $50 million in a full year.
In addition to the layoffs--which make up 14 percent of Elan's workforce--the company will postpone its biologics manufacturing activities, redesign and realign its biopharmaceutical R&D organization and reduce other support activities. These changes follow Elan's announcement in late 2008 that it would close its New York and Tokyo units and cut an unspecified number of jobs.
Elan is awaiting data from a Phase III trial of bapineuzumab for Alzheimer's. Depending on the results of that study, the company may reassess the opportunity to invest in a biologics manufacturing facility and restart its related fill finish activities.
Hit by harsh criticism of its handling of Tysabri and disappointing results for bapineuzumab, Elan has initiated a strategic review that may lead straight to a sale or merger pact, though some investors are attempting to block the sale. Citigroup is advising Elan, which owes more than a billion dollars.
- here's Elan's release
- see the RTE Business article
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