05 January 2004 00:00 [Source: ICB Americas]Ireland-based Elan Corp. PLC is selling its European sales and marketing business to Medeus UK Ltd., a new UK pharmaceutical company backed by Apax Partners Funds, for roughly $120 million, set to close during the first quarter of 2004. Elan will retain its operations in Athlone, Ireland, and its research and development operations in Stevenage, UK.
As part of the transaction, the company will divest both its sales and marketing operations in the UK and 100 percent of the equity in its sales and marketing affiliates in Germany, France, Spain, Italy and Ireland. Net revenue and gross profits for the first nine months of 2003 for those activities were $56.4 million and $38.7 million, respectively, down from $70.1 million and $50.7 million, respectively, in 2002.
Elan expects to record a pretax gain of about $10 million from the deal, and says it will separately sell certain rights to two products in the UK and Ireland for about $10 million.
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