Biotech: Dublin-Based Firm Basing North
American HQ Here
Dublin-based drug company Elan Corp., plc. will bring 100 employees of its pharmaceuticals unit to Sorrento Valley, the planned new headquarters of its North American operation, according to a local economic official.
A company official, however, wouldn’t confirm the relocation of employees.
But Elan spokesman Max Gershenoff acknowledged the Irish drugmaker plans to consolidate Elan Pharmaceuticals unit , primarily operations in New Jersey and San Francisco.
Elan Pharmaceuticals has about 2,000 employees worldwide, according to sources close to the company.
The planned expansion in San Diego could mean several hundred new jobs and lucrative deals with the local biotechnology industry.
The drugmaker already has a presence locally through its $1.8 billion buyout of Sorrento Valley-based Dura Pharmaceuticals last year.
Julie Meier Wright, chief executive of the San Diego Regional Economic Development Corp., said the EDC and city officials have been working with Elan to keep Dura’s operations here.
Unit Consolidated
The unit has been consolidated and the number of employees has been cut from 400 to fewer than 200 people.
“San Diego was in head-to-head competition with New Jersey (and) as of a week ago New Jersey was in the lead,” Wright said.
She said the EDC and city officials successfully competed against New Jersey by responding to Elan’s needs.
Among them is the required expansion of research space on the third floor of the existing building and the option to construct a new facility on a neighboring site, she said.
The current site could accommodate 700 employees, Wright said. She added, “There is a framework under way that would enable Elan to add several hundred people.”
Elan’s Gershenoff declined to give specifics of what expansion means in terms of new jobs.
However, he said, “It’s well-known that San Diego is a national biotechnology center. It provides a great deal of opportunity with regards to recruiting when you have the number of biotech firms and so many biotech leaders based in a single city.”
Three Units
Elan Pharmaceuticals is one of three units of the Irish parent company and focuses on the development of drugs for pain management, neurological disorders and cancer.
During the first quarter of 2001 ended March 31, Elan Corp. reported $144.4 million in net income, up 89 percent from the same period a year ago.
In a company statement, Elan’s chairman and CEO Donal J. Geaney, said he was pleased with Elan’s progress in integrating the North American pharmaceutical business following its merger with Dura.
Other Elan investments in San Diego include the following biotechnology firms: Ligand Pharmaceuticals, Inc., Isis Pharmaceuticals, Inc., FeRx Pharmaceuticals, Inc., Digital Gene Technologies, Neurome Inc., and Targeted Molecules Corp.
Meier Wright said the effort to ensure Elan’s expansion in San Diego continues.
“Elan told us we have to successfully compete for consolidation,” she said. “(San Diego) is not a low-cost place to do business. The EDC and city officials will work very hard to be responsive to Elan’s needs so we can maximize the chances that they (Elan) will put their growth here.”
