Elan plans to spin-off of its discovery sciences unit from the main company. The transaction will create two independent public companies, Elan Corp. plc and Neotope Biosciences plc. Subject to certain conditions, the spin-offs will be complete by the end of 2012.
Elan Corp. will initially consist of three main assets: Tysabri (marketed in collaboration with Biogen Idec) for Multiple Sclerosis and other potential indications; ELND005, a small molecule in Phase II for a range of neuropsychiatry and symptomatic diseases; and the continued interest in Janssen AI, under which Pfizer manages the on-going AIP portfolio including Phase II Bapineuzumab (subQ); Phase II vaccine (ACC-001) and Phase I AAB-003 (mab). Neotope Biosciences will continue to focus on identifying and translating targets into potential therapies for chronic degenerative and other related disease areas.
A joint statement from chairman Robert A. Ingram and chief executive officer Kelly Martin noted, “This is a bold and logical strategic step as it provides shareholders with the ability to delineate risk, timelines and business characteristics to their own specific investment objectives. As we have done over the past decade and will continue to do in the future, the strengthening of the balance sheet, capital structure, income statement and progression of the science for the benefit of patients, has been a constant goal and objective of the management team and supported by the board of directors.”