Novartis in talks to buy much of Elan: report

DUBLIN (Reuters) - Swiss drugmaker Novartis (NOVN.VX) is in talks to buy parts of Irish peer Elan (ELN.I), including its flagship multiple sclerosis products and its Alzheimer's disease pipeline, the Sunday Times said.

A spokeswoman for Elan said it did not comment on speculation. A spokesman for Novartis declined to comment.

The Sunday Times said a "well-placed source" confirmed the talks but added the "complexity of the deal made a decision some way off".

Elan, a co-marketer with Biogen Idec (BIIB.O) of multiple sclerosis drug Tysabri, hired Citigroup in January to conduct a review of the business and said at the time a merger or sale of the company was possible.

It said on June 10 it expected to conclude a strategic transaction "in the near term", after talking over the past few months with a number of the global players in pharmaceuticals and biotechnology.

Chief Executive Kelly Martin then declined, however, to comment on whether discussions had broken down with Bristol-Myers Squibb Co (BMY.N), as a source had earlier told Reuters.

Analysts say Elan is running out of options for a strategic partnership as earlier market talk of a link-up with companies such as U.S. giant Pfizer Inc (PFE.N) or Denmark's Lundbeck (LUN.CO) have all turned out to be unfounded so far.

(Reporting by Andras Gergely; Editing by Jon Loades-Carter)