Novartis in Talks For Parts of Elan

Novartis(NVS Quote), the Swiss drugmaker, is in talks to buy certain operations from Ireland's Elan(ELN Quote), according to a report from London's Sunday Times.

The sale would include biotechnology company Elan's flagship multiple sclerosis treatment Tysabri and its Alzheimer's disease pipeline, the newspaper said.

A "well-placed source" confirmed the talks but added that the "complexity of the deal made a decision some way off," the Sunday Times reported.

Strategic talks reportedly were held in May between Bristol-Myers Squibb (BMY Quote) and Elan, but they broke down in the early stages.

Elan markets Tysabri with Biogen Idec(BIIB Quote). The company also is developing a high-profile experimental drug for Alzheimer's disease in partnership with Wyeth(WYE Quote).

Back in January, Elan hired Citigroup as an adviser to review alternatives, including a minority investment, an alliance, or a merger or sale of the company.