Elan spin-off set for listing

Prothena — the former drug discovery division of Irish biotech company Elan — is set to begin life as a stand-alone public company this week through a Nasdaq listing.

Four months ago Elan announced its intention to hive off the business — previously named Neotope Biosciences — in order to focus on its remaining assets, including leading multiple sclerosis treatment Tysabri and the ELND005 drug candidate, which the company is aiming to develop for a number of treatments.

Prothena will focus entirely on early-stage drug development and research.

In August, Elan’s management hailed the move as “a bold and logical strategic step” toward lowering operating costs, doubling earnings, and delivering sustainable net profitability. However, it denied suggestions it was aimed at making Elan a more attractive takeover target.

Shares in Prothena are scheduled to begin formally trading on New York’s Nasdaq exchange on Friday and tomorrow on a “when issued” basis. with Elan having formally applied to list the firm on the Nasdaq Global Market.

Headed up by former Elan senior executives Dale Schenk and Lars Ekman, it was always set to be floated as a separate entity in the US, but it had not been known whether it would list on the Nasdaq or the New York Stock Exchange.

Elan — via subsidiary companies — will invest about $125m (€95m) into Prothena and maintain an 18% stake in the company.