Elan to spin-off discovery science and Neotope Biosciences
Ireland-headquartered Elan Corp (NYSE: ELN) this morning revealed that its board of directors has approved the spin-off of the discovery science and Neotope Biosciences, as a result of which Elan will immediately become a profitable and high growth company, which recorded a net loss from continuing operations of $28.5 million for the second quarter of 2012, a 39% decrease from the $47.0 million for the second quarter of 2011.
Completion of this transaction will create two independent, highly focused, public companies that will enable investors to align timelines, risk and returns in order to best achieve their investment objectives. Elan is targeting $1.00 earnings per share by 2015 with the new business construct.
The move may fuel speculation that Elan, shorn of its loss-making research arm, will be a more attractive takeover target for US biotech company Biogen Idec (Nasdaq: BIIB), with which it markets the multiple sclerosis drug Tysabri (natalizumab), commented Reuters.
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