Top two quit in shake-up at Elan

ELAN, Ireland's crisis-ridden drugs firm, today parted company with its chairman and chief executive Donal Geaney and confirmed his deputy Thomas Lynch was also quitting the board.

However, in a remarkable move, both men will be kept on as consultants to advise a new 'executive' board made up of non-executive directors.

New chairman Garo Armen said the new committee would continue to implement the rescue plan and that Elan still had $1.3bn (£842m) of cash with which to do this. He said that Elan would issue new 'earnings guidance' within a few weeks and raise 'at least $1bn through the sale of assets and businesses over the next nine months'.

Armen said there were no plans to liquidate the company. He added: 'We intend to simplify the company's balance sheet for transparency and ease of understanding by our investors.'

Elan revealed this year that last year's profits would have been significantly lower if it had not used two off-balance-sheet vehicles to handle drugs royalties.

It is being investigated by America's Securities and Exchange Commission.