Elan Sets Up For Sale With Neotope Biosciences Spinout
This article was originally published in The Pink Sheet Daily
Elan’s sole near-term growth prospect is Tysabri after the Irish drug maker spins out its discovery research unit Neotope Biosciences with $120 million to $130 million in start-up capital.
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Changes at the Irish company have sparked a swath of media speculation and analyst interest. Elan CEO Kelly Martin used a recent fireside chat in New York to paint a clearer picture of what is going on at the company and the rationale behind its recently proposed M&A.
In its continuing effort to spend its way into becoming a diversified pharma, Elan announced a new trio of deals. Some liken its geographically diverse, specialty pharma strategy to that of highly successful Valeant, but Wall Street remains unsure that Elan can execute. Hostile bidder Royalty Pharma took the opportunity to further tempt shareholders by raising its offer.
Elan peels off assets to attract suitors: First Biogen buys out Elan’s 50% interest in Tysabri, then Royalty Pharma maneuvers to buy out Elan.