Irish pharmaceutical company Elan has launched a spin-off of its discovery science and Neotope Biosciences business platform.
The company said it will create two independent companies to enable investors to align timelines, risk and returns in order to "best achieve their investment objectives."
Elan Corporation will initially consist of three main assets: Tysabri for the treatment of Multiple Scleroisis; ELND005, a small molecule being tested for neuropsychiatry and symptomatic diseases; and a portfolio managed by Janssen and Pfizer which includes Phase II Bapineuzumab.
Neotype Biosciences, which was launched in 2010, will operate as a separate drug discovery business platform and focus on identifying and translating targets into potential therapies for chronic degenerative and other related disease areas.
Elan CEO Kelly Martin said; "By establishing Neotope Biosciences and Elan as distinct businesses - each with its own specific business characteristics and dynamics - we provide investors with important clarity, transparency and choice as it relates to their investment decisions."
In a joint statement with Elan chairman Robert Ingram, Martin added; "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."
Completion of the spin-off is subject to conditions, including approval by Elan's shareholders and by holders of its 2016 Notes, which the company will be seeking "as soon as is practical."
The transaction is expected to close by the end of 2012.