Bristol-Myers Squibb may acquire minority stake in Irish biotech firm

01 June 2009

Irish neuroscience-based biotechnology company, Elan Corporation, plc is in advanced talks to sell a minority stake to Bristol-Myers Squibb, which could lead to the US pharmaceutical major acquiring the Irish firm in a multi billion pound deal in the future.

New York City-based Bristol-Myers, with net sales of $20.6 billion in 2008, is one of two serious contenders for a minority stake in Athlone, Ireland-based Elan, which could see the drug giant also acquiring a seat on Elan's board, according to The Wall Street Journal, citing a source familiar with the talks.

Last year, Bristol-Myers Squibb had lost out to Eli Lilly in its bid to acquire US-based biotechnology company ImClone Systems, when Eli Lilly outbid Bristol-Myers Squibb revised sweetened offer of $62 a share or $4.7 billion to that of Eli Lily's $6.5 billion. (See: Eli Lilly to acquire ImClone for $6.5 billion)

The Journal said that the deal could be finalised early this week or the talks could also break down since there is another company willing to buy a stake in Elan with an eye to acquire the entire company in the future.

Elan, whose current market value is approximately $3.3 billion, had reported in its most recent quarterly earnings report that it had increased its revenue by 14 per cent to $245.1 million but incurred a net loss of $102.6 million.

In January, the company, which was founded by American entrepreneur Don Panoz in 1969, had hired Citigroup to conduct a strategic review since it had piled up debts of over £874 million, scheduled for refinancing by 2011.