Seminar: Lars Ekman – EVP & President Global R&D – elan

From Rags to Riches and back again - 7 Year Learning Experience with eLan
History -
Deal driven
Cash Flow - Drug Delivery

Acquisitions - 22 companies in 2.5 years
Model - JV between Biotech and elan which will buy IP from elan using money from elan!

MS Tysabri Tlymphosites
reverse memory loss on cover of nature December 2000 (big achievement)

Perfect Storm brewing!
Enron, SEC investigation, Halt Trials Generic Threat, Critical WSJ Article

Share Price - $62 - $1.30 (Market cap 24 B to 400 mill) had 4B debt (looks okay for 24B company, but not for 400 mill company)

New management
Debt Reduction - 2.4B from asset divesture, 1.2B LT convertible Debt
Headcount reduction - 5400 to 1800
Cost Reductions

Tysabri got FDA approval. filed MAA

New Challenges
Cox2 Congressional Hearings. Two adverse events.

Share Price: 29-3 11.5 - 2.6 Billion

New Trials
Approval by EV and VS
AD - phase 3
Market Cap 11 B

Lessons Learned:
1. Maximum Transparency - dispense all bad news at once
2. Delineate Facts from opinions
3. Select Data Setets? (Monitoring Board w/ease)
4. Don't look back - Address next 3 steps.
5. Don't look down

Date: 11/16/2007