Elan, as part of its restructuring efforts to manage costs and make additional investments in its pipeline, will suspend biologics manufacturing activities and cut approximately 230 positions, or 14% of the company’s workforce. Elan chief executive officer, Kelly Martin, said, “This internal realignment was driven by an assessment of the biopharmaceuticals business completed by Dr. Carlos V. Paya, president of Elan.”

The company will realign the R&D organization within the biopharmaceutical business, and reduce related general and administrative, and other support activities. In Ireland, where Elan’s biological manufacturing and related fill-finish activities are based, approximately 115 positions will be impacted. An additional 115 positions will be affected in the U.S., mainly in the areas of research, clinical development, biopharmaceutical development, and related corporate support and administrative services. The company plans to reassess investments in a biologics manufacturing facility and restart its related fill finish activities following results from Phase III trials of bapineuzumab in Alzheimer’s disease.

Elan expects these adjustments to reduce operating expenses in 2009 by $30-$35 million and by approximately $50 million in a full year. Severance and related charges are expected to be $15 million and will be recorded in 1H09.

Mr. Martin remarked, “As we continue to advance the company, we remain committed to the precise and specific investment in new talent, new technologies and novel therapeutic opportunities in the neuroscience field. This will further strengthen our core business areas that bring the greatest potential value to patients and shareholders, and enable us to invest in our most valuable programs within the Biopharmaceuticals and Elan Drug Technologies businesses.”

Dr. Paya said, “We are creating a forward-thinking, flexible, science-based and patient-focused business supported by modest infrastructure. This model maximizes our opportunities and leverages our unique innovation, talent, experience and pipeline.” Dr. Paya added, “This realignment has been strategically driven and will enable us to further focus on our four key near-and intermediate-term priorities: driving uptake of Tysabri, advancing our Alzheimer’s programs, harnessing the value of our pipeline, and maximizing the growth of EDT.”