Elan Corporation

NYSE:( )

Elan Corporation, plc (Elan) is a neuroscience-based biotechnology company. Its principal research and development, manufacturing and marketing facilities are located in Ireland and the United States. Elan’s operations are organized into two business units: Biopharmaceuticals and Elan Drug Technologies (EDT). Biopharmaceuticals engages in research, development and commercial activities primarily in neuroscience, autoimmune and severe chronic pain. EDT focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing.

The following article was written and contributed by a highly regarded investor and member within the StocksHaven Investments community, Nicholas DeCesare:

Any long term holder of Elan can’t be happy with the stock price over the past year. In fact, shares have gone from the mid 30’s in the summer of 2008, to around $7 a share. Since announcing a deal with pharmaceutical giant Johnson and Johnson, in which J&J agreed to pay one billion dollars for an 18.4% stake in Elan, the share price has had little upside. Elan shares closed at $7.24 on Wednesday, this was only a little more than 3% higher since announcing the deal. This after Elan shares hit an intra-day high in the $8.50 range the day the deal was announced on July 2nd. Why such lack of movement for Elan after such a big deal was announced? Shareholders have been voicing their concern over the stock price movement in the past week, or lack there of, however, Elan could be well positioned for a bright future and a large move up in their price per share.

One of the bigger issues facing Elan is its lack of credibility on Wall Street. Their reputation was tarnished after current CEO Kelly Martin promised the world to investors last year about their current Alzheimer’s drug, bapineuzumab. But, when Phase II data was released in 2008, the results were mediocre and the stock price collapsed. Many shareholders were calling for his ouster, and some still are, despite his efforts to begin looking for a buyer for part or all of the company in January of this year.