Elan believes that the separation and distribution will provide a number of benefits, including a greater strategic focus of financial resources and management’s efforts, direct and differentiated access to capital resources, enhanced investor choice through investment opportunities in two separate companies and enhanced management incentive tools.
Following the announcement of the Neotope separation, the results of the Neotope business that are included in the Consolidated Income Statement for the three and nine months ended September 30, 2012, are presented as a discontinued operation and the comparative amounts have been restated to reflect this classification.
Transaction and other costs associated with the Neotope separation of $6.7 million were incurred during the third quarter of 2012 and have been reported in the net loss from discontinued operations reporting line.
The net loss from discontinued operations for the Neotope business for the three and nine months ended September 30, 2012 and 2011 are set out in detail in Appendix I and Appendix II.The assets of Neotope have been presented as held for sale as of September 30, 2012. The carrying value of these held for sale assets at September 30, 2012 was $3.4 million, primarily consisting of property, plant and equipment. Elan Drug Technologies In September 2011, Alkermes plc and Elan completed the merger between Alkermes, Inc. and EDT. Alkermes, Inc. and EDT were combined under a new holding company incorporated in Ireland named Alkermes plc. In connection with the transaction, Elan received $500.0 million in cash and 31.9 million ordinary shares of Alkermes plc common stock. Elan sold 76% (24.15 million ordinary shares) of its shareholding in Alkermes plc in March 2012 and received net proceeds of $381.1 million. Elan continues to hold 7.75 million ordinary shares of Alkermes plc, representing an approximate 6% equity interest, which had a carrying value of $160.8 million at September 30, 2012.