This is the tail end of the housecleaning. They hired Kelley Martin, a financial type, to dress the Company up for a sale. However, that doesn't mean it will be done overnight. It could take one or two years. It would be foolish to sell the Company before releasing the results of Antegran and MS. If the results are compelling, Bgen-Idec will have no choice but to buy them out in a stock deal. The cash raised means that they can sell themselves on their own time without any pressure. They are becoming more of an R & D Company., The rights for proprietary products are worth a whole lot more than mature, off patent, or nearly off patent drugs. The acquirer doesn't want to be stuck with the clutter, hence the housecleaning. Getting rid of the Euro sales operation is worth more in a takeover scenario than it is as part of the existing Company. That's the hidden premium we can't appraise at this time.
The SEC thing, IMHO is a formality. If the Company is taken over, the SEC will step aside; it will be a non-issue because there will be new management. The SEC has more important dockets on their agenda.
From what I understand-- since Prialt gets injected into the spine and prevents pain signals from reaching the brain-- it wouldn't be very good for headaches (pain above where Prialt is administered).
Here we go again with the "pumping" takeover rumors, it's not going to happen !
Your quote"The SEC thing, IMHO is a formality. If the Company is taken over, the SEC will step aside; it will be a non-issue because there will be new management. The SEC has more important dockets on their agenda."
If the SEC is a non issue to a takeover, then why wasn't Elan takeover long ago when the share price was lower ?.
KM and GA are no fools, they know the true value of Elan and it is not at a sale price of $20 or $25. KM is a smart guy and a wealthy guy. He took a big risk in taking on the job at Elan, not knowing a lot about the drug industry, as he said himself, it's a learning process. Why did he take the job at Elan and what was his motive for taking the job?, so that he could get a $5 million pay out after he turns the company around and sells it?. $5 million is nothing to him. The guy could have taken any Wall Street job offer with more pay and less risk than the Elan job.
Who's going to be in the spotlight when Elan announces a cure for ALZ someday?, when they get Antegren approved for MS and Crohns disease. You can bet it's going to be KM. And Elan is going to be still a independent company, headed up by KM.
KM will want to be remember as the CEO of a independent drug company that has helped improve the lifes of millions of people.
ELN was a different company (vis a vis the SEC) six months ago. Now that they have divested and unwound so many partnerships, they can be looked upon differently by the SEC. In my experience, when a new CEO comes in to turnaround a troubled Company, they are usually looking for a 2 year exit strategy (no matter how rich they are). He will make plenty on his stock options, if the Company is sold around $10. I had two such stocks this past year: CSON, which was taken over by ANPI (the CEO barely lasted six months before selling rthe Company) and SANG, which was taken over by GENZ (in which the CEO lasted barely 4 months). I don't think he needs the Tzores (that's Gaellic for headaches).
you don't sell profitable divisions unless you are trying to simplify things.
Assuming they raised enough cash to make it through antegren trials.
You don't sell cash cows at this point unless you are streamlining for takeover.
sec does not act on mergers. ftc has approved 1000's of mergers. maybe with eln its different. it always is somehow.
ecc more a problem than sec. eln will be like the ugly old maid that finally got hitched.
evryone will be so glad to be rid of her that they will love any suitor.