The rumors surrounding Elan's
So far we've had rumors that Pfizer
Next up: Novartis
Elan is desperate for cash -- it has a large amount of debt due in 2011 and some more due in 2013 -- but this one seems the most dubious of them all. There would be no guarantee that Novartis would be able to gain the rights to Tysabri, because Elan's partnership with Biogen Idec
It seems more likely that Elan would want to sell Novartis the whole kit and caboodle. Actually, the structure that Bristol-Myers was rumored to be partaking in -- a minority stake with an option to buy the entire thing later -- would work well for Novartis. Such a move would allow the company to get a feel for working with Biogen and Wyeth, Elan's Alzheimer's dug partner, and Novartis seems comfortable with taking minority stakes in other companies -- it's bought shares of quite a few companies, including Roche, Alnylam Pharmaceuticals
This isn't a TV show, and investors shouldn't have expected a decision about Elan's strategic review "right after the break." But the company better get a move on and announce something before investors grow tired of the soap-opera rumor mill and sell their shares.
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