Indebted Irish pharmaceutical company Elan has confirmed that it is in talks to sell part of its European operations.

The company said the sale would mainly consist of its European sales and marketing business, but would not confirm if or when the transaction might be completed.

Elan was the biggest company on the Irish stock exchange two years ago but an admission from then chief executive Donal Geaney that two off-balance sheet expenses had not been consolidated triggered a downwards spiral in investor confidence from which the company has still not recovered.

The company's accountancy practices are still the subject of a Securities and Exchange Commission investigation, which analysts expect to be completed by mid-2004.

Earlier this month Elan completed the sale of its four pain products and related assets for $101.8 million. North-Carolina-based specialty pharmaceutical company aaiPharma purchased the rights to Roxicodone, OramorphSR, Roxanol and Duraclon after making a cash payment to Elan of $50.4 million and assuming $51.4 million of Elan's product-related payments.

pharmafocus@pharmafile.co.uk