When former Merrill Lynch banker Kelly Martin took over Elan Pharmaceuticals in 2003, it was well known he did not have any drug industry experience. The thinking then was to fix the company and then sell it to the highest bidder.
Ten years later, despite the criticisms and allegations of improper use of company jets and drug failures, he is still in charge of the company. This though may change altogether, as a shareholder vote of confidence would be in the offing. This would come depending on the results of the vote for either acceptance of the Royalty Pharma takeover bid or continue on the path charted by Martin himself.
Martin's plan is to reinvest the US$3.25 billion fund received by Elan from its former Tysabri partner Biogen Idec. The deals that would be formalized would surely determine the company's future. On the other hand, it can vote against acquisitions through a share buyback and drug spinoff plan.
The shareholders would need to vote on four resolutions, all of which affect Martin's precarious position as CEO.
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