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TheStreet Open House

Elan Announces Plan To Spin-Off Discovery Science And Neotope Biosciences To Shareholders

Elan Corporation plc Profile

  • Immediately profitable and high growth company
  • Headquartered in Dublin, Ireland
  • 2011 revenues of $1.2 billion; 2011 GAAP Operating Expenses of $403 million
  • Post transaction GAAP Operating Expenses of ~ $300 million
  • 2013 post a successful spin-off transaction estimated EBITDA in excess of $400 million and estimated Net Income in excess of $250 million; and targeting $1.00 earnings per share for our shareholders by 2015, with the new business construct
  • Corporate tax of 12.5%; more than $4 billion in accumulated losses and other structures for after tax EPS incremental returns and stakeholder benefits
  • ELND005 with Phase 2/Phase 2b in several neurology and neuropsychiatry symptomatic indications
  • Leadership:
  • Chairman: Robert A. Ingram
  • Chief Executive Officer: Kelly Martin
  • Employees: approximately 90 – 110 people
  • Equity interests in Janssen AI - AIP Programs, Alkermes plc, Proteostasis Therapeutics, and Neotope Biosciences

Neotope Biosciences plc Profile

  • Drug discovery company focused on translating distinct targets into therapies for chronic degenerative and other related diseases
  • Incorporated in Ireland with operations in South San Francisco, California
  • Key targets: synuclein, tau, MCAM, amyloid for application to a wide variety of diseases
  • Potential for three INDs by 2015
  • Expected cash spend of $50 - $60 million per annum
  • Leadership:
    • Chairman: Dr. Lars Ekman
    • Chief Executive Officer: Dr. Dale Schenk
  • Employees: approximately 80 people
  • Elan Corporation plc to commit $120-$130 million start-up capital and to retain 14 - 18% minority equity position

Conditions

The transaction is subject to a number of conditions, including approval by shareholders and the holders of the 2016 Notes.

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