Company

Bank

Analyst

Coverage

Opinion

Wk chg

8/10 cls

Elan Corp. plc (NYSE:ELN)

RBC Capital Markets

Michael Yee

Other

Outperform

-2%

$11.10

Yee believes Elan needs to think about strategic alternatives and a possible acquisition by Biogen Idec Inc. (NASDAQ:BIIB) after Pfizer Inc. (NYSE:PFE) and Johnson & Johnson (NYSE:JNJ) discontinued development of Phase III compound IV bapineuzumab for Alzheimer's disease (see B18). J&J acquired rights to the mAb against beta amyloid from Elan in 2009. In July, Yee said he thought a reasonable scenario for Elan following a potential bapineuzumab failure would be to sell its 25% stake in the compound, or get a contingent value right (CVR) for a minor future interest, and sell itself to Biogen at up to $15 per share.