Elan shareholder asks for removal of CEO

By Lisa Kerner

Charlotte, N.C., Dec. 12 - Shareholder Crabtree Partners asked Elan Corp., plc chairman Kyran McLaughlin to immediately terminate chief executive officer Kelly Martin, it was announced on Friday.

According to Crabtree, Elan's stock price has dropped to $7 from $37 over the last four months prior to the general market decline.

"Lack of relevant industry experience, gross incompetence related to the management of Tysabri and its partnership with Biogen, and egregious misuse of company resources have caused investors to lose confidence in Mr. Martin and his management team," Crabtree co-founder Jack Schuler said in a letter to McLaughlin.

"What was the board thinking when they chose a Merrill Lynch employee to be the CEO of Elan? As far as I can see, he has no experience in pharmaceuticals or in managing any type of operation."

Schuler said he also wants Elan, a Dublin-based biotechnology company, to control expenses, quickly boost sales of the drug Tysabri and skillfully manage the approval and marketing of its Alzheimer's drug, Bapineuzumab.

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