Hit by harsh criticism of its handling of Tysabri and disappointing results on its experimental Alzheimer's drug, Ireland's Elan has initiated a strategic review that may lead straight to a sale or merger pact. Citigroup is advising Elan, which owes more than a billion dollars.

Elan has already made several moves to preserve cash for development work, closing offices in New York and Tokyo and laying off workers. But the analysts have offered considerable criticism for the company's debt level and operating losses.

As a buyout target, though, Elan may be just the kind of biotech acquisition that a number of big pharma companies have recently been voicing an interest in. And Pfizer was quickly touted as a potential suitor. One complicating factor: Elan's key assets are closely tied up with Biogen Idec and Wyeth, making a buyout deal tricky at best. Investors weren't waiting for the next headline, though, sending up Elan's shares by 14 percent.

On a separate note, Elan denied a report that the duration of its Phase III for its Alzheimer's drug bapineuzumab has changed. The company says that the trial is still expected to last 18 months.

- read Elan's announcement
[1]- check out the report [2] in the Wall Street Journal
- read the story [3] from Dow Jones

Related Articles:
Elan closes sites, cuts jobs [4]
Elan's Martin: Worst biotech CEO? [5]
Elan hires ex-Lilly exec Paya as new prez [6]
Elan shareholders file lawsuit [7]
Cinven drops out of bidding for Elan division [8]
Elan considers selling division [9]