The case starts with the newly appointed chairman and interim CEO Garo Armen dwelling on the important issues that Elan Corporation, the Irish pharmaceutical company is facing. Its stock price fell 96% amid allegations of accounting fraud and termination of important clinical trials because of severe side effects of the drug. As a result, Elan is facing insolvency. About $ 2 billion of debt that could not be met in stock soon mature, and there are issues relating to the structure of the company and the various operational problems. Armenia is also concerned about the ethical implications of the failure of the company, and therefore not in a position to develop life-saving drugs. Armenia must decide which character Elan should move forward, and what strategy should be adopted. Operational and financial issues discussed in the case is complicated by the status of Elan, as an Irish company with significant international operations. The case is closed with Armen thinking about the decisions he made that students should criticism and to present alternatives, and public decision on choosing a successor CEO. "Hide
by James Shein, Robert Anstey, Nathan Lang Source: Kellogg School Management 11 pages. Publication Date: July 1, 2010. Prod. #: KEL507-PDF-ENG
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