Warburg Pincus to enter race for Elan unit

DUBLIN (Reuters) - Private equity firm Warburg Pincus WP.UL is set to enter the race to acquire the drug delivery unit of Ireland's Elan Corp (ELN.I), the Sunday Times newspaper reported.

Sources familiar with the matter told Reuters earlier this month that Elan (ELN.L) had received first-round bids for Elan Drug Technologies (EDT), which may fetch as much as $1.3-1.4 billion (702-756 million pounds) and it was hoping for a quick sale of the unit.

Warburg Pincus was not immediately available to comment and Elan declined to comment.

The Sunday Times and previous reports also mentioned Texas Pacific Group TPG.UL and Bain Capital as potential buyers of EDT.

The Sunday Times said buyout firm Cinven CINV.UL was also among those eyeing EDT, which develops new formulations of medicines on a contract basis for other drugmakers.

The Irish Independent newspaper reported on Friday, however, that Cinven had withdrawn from the race, as had Kohlberg Kravis Roberts KKR.UL.

Cinven and Kohlberg Kravis Roberts officials in London could not immediately be reached for comment.

Elan Chief Executive Kelly Martin told Reuters on July 30 that Ireland's biggest drug company was pushing ahead with a strategic review of EDT and had received a lot of interest from potential private equity buyers.

At the time, Martin said a stock market flotation was also being pursued as an option -- but the group is now focusing primarily on a sale.

(Reporting by Andras Gergely; editing by Elaine Hardcastle)