Elan investing up to $50 million into the alliance with Proteostasis

Ireland-headquartered Elan Corp (NYSE: ELN) has entered  a strategic business relationship to advance US drug discovery firm Proteostasis Therapeutics’ platform for the discovery and development of disease-modifying, small-molecule drugs and diagnostics for the treatment of neurodegenerative disorders such as Parkinson’s, Huntington’s, multiple sclerosis and amyotrophic lateral sclerosis (ALS), and a broad array of dementia-related diseases including Alzheimer’s.

Under terms of the deal, Elan has invested $20 million into equity capital of Proteostasis, giving it around a 24% stake in the company, and will have an opportunity to provide an additional $30 million in collaboration funding over five years. As part of the agreement, Elan obtained a right of first negotiation to exclusively license compounds emerging from the combined initiative and will have the right to a seat on the Proteostasis board of directors as well as its scientific advisory board. By mutual agreement, this innovative relationship can be extended for a further five years.

This innovative initiative will combine Proteostasis’ unique discovery technology, novel targets and compounds that modulate key Proteostasis Network pathways with Elan’s long-standing strength in proprietary animal models, biology, medicinal chemistry and clinical development.