Elan To Close Pennsylvania Site Ahead Of Unit Sale To Alkermes

Elan Corp. PLC (ELN) plans to close a suburban Philadelphia facility employing at least 104 people, a move Elan says is related to the $960 million deal to sell its drug-technology unit to Alkermes Inc. (ALKS).

Dublin-based Elan, which co-markets the multiple-sclerosis drug Tysabri with Biogen Idec Inc. (BIIB), said it will close its King of Prussia, Pa., site by the end of September and transfer current projects and technology capabilities to other locations.

The decision to close the site followed a "comprehensive review" of the combined businesses of Alkermes and Elan Drug Technologies, said Niamh Lyons, an outside spokeswoman for Elan.

The closing affects 104 workers, according to the website of the Pennsylvania Department of Labor and Industry. Elan's work force, before the close of the sale to Alkermes, is about 1,150.

Elan uses the King of Prussia site for research and development, manufacturing, sales and administration, according to an Elan filing with the U.S. Securities and Exchange Commission. In 2009, its lease for the site was extended to between April 2019 and May 2020.

In May, Elan agreed to sell its drug-technology unit, which develops drug-delivery mechanisms, to Alkermes, Waltham, Mass., for cash and shares then valued at about $960 million.

Elan plans to use the proceeds to pay down its debt, improve its capital structure, and hone its focus on neurology therapies.

The deal is subject to approval by Alkermes shareholders. An Alkermes spokesman couldn't immediately be reached.

--By Peter Loftus, Dow Jones Newswires; [phone]; [e-mail]

--Sten Stovall in London contributed to this article.