Irish drugs group Elan today continued its disposals spree with the sale of its European sales and marketing business.
The Dublin-based group stands to make around $120 million from the sale to Medeus UK, a new pharmaceutical company backed by private equity firm Apax Partners.
The deal is the latest in a string of disposals which have already earned the group around $2 billion during the past 12 months.
The sale includes Elan's sales and marketing operations in the UK, as well as affiliates in Germany, France, Spain, Italy and Ireland.
But the group will retain its operations in Athlone, Co Westmeath, and its research and development operations in Stevenage, Hertfordshire, in England.
Chief executive Mr Kelly Martin said: "Divesting these operations is consistent with our strategy of focusing on areas that are essential to our future and enables us to tailor our European sales and marketing efforts towards our pipeline products."
The group expects to record a pre-tax gain of around $10 million from the transaction, which should be completed during the first quarter of 2004, subject to regulatory approval.
During the first three months of 2003 the products recorded net revenues of $56.4 million and gross profits of $38.7 million.
Elan, which is listed on the London, Dublin and New York stock exchanges, focuses on the development and sale of treatments for Alzheimer's disease, Parkinson's disease, multiple sclerosis and autoimmune diseases.
PA