Elan Corporation, plc announced that it is seeking binding arbitration in connection with a dispute regarding its Exclusive and Mutual Beta Secretase Inhibitors Research, Development and Marketing Agreement 32 with Pfizer Inc. The agreement, originally entered into with Pharmacia Corporation in August 2000, concerns the discovery of small molecule inhibitors of beta secretase at the research stage for the treatment of Alzheimer's disease.

The binding arbitration is based on Elan's termination of the agreement for cause due to certain breaches by Pfizer. As a result of the termination, Elan believes that it holds the exclusive worldwide license to the intellectual property developed in connection with the beta secretase research program.

"Prior to taking this step we made every effort to come to a mutually acceptable resolution that would enable us to move forward either with Pfizer or independently," said Kelly Martin, Elan president and chief executive officer. "Given the potential medical importance of the beta secretase program and our leadership position in Alzheimer's research and development, we will take the appropriate course of action to protect and enforce our rights under the agreement. As one of the world's leading companies dedicated to the treatment of Alzheimer's disease, Elan remains focused on changing the course of the disease in an effort to ultimately help millions of patients and their loved ones."

In addition to its beta secretase research, Elan's Alzheimer's programme includes a beta amyloid immunotherapy strategy, in collaboration with Wyeth, and research work on the development of inhibitors to gamma secretase, which, like beta secretase, is also associated with the development of the beta amyloid peptide. Neither its immunotherapy projects nor its gamma secretase research is affected by Elan's termination of the Pfizer collaboration.

Elan is focused on the discovery, development, manufacturing, sale and marketing of novel therapeutic products in neurology, severe pain and autoimmune diseases. Elan shares trade on the New York, London and Dublin Stock Exchanges.