Elan has finally found a buyer for its drug delivery unit by entering into a US$960 M agreement to merge Elan Drug Technologies with Alkermes. Elan will receive US$500 M in cash and a 25% equity stake in the merged entity, Alkermes plc, which will be incorporated in Ireland and quoted on Nasdaq. The new company will focus on CNS therapeutics and will have a portfolio of 25 marketed products based on its drug delivery technologies and pro forma revenues in excess of US$450 M annually.