Elan to buy AOP, NewBridge stake, spin out ELND005

Elan Corp. plc (NYSE:ELN) announced two proposed acquisitions on Monday, including a proposal to buy rare disease company AOP Orphan Pharmaceuticals AG (Vienna, Austria) for EUR 175.7 million ($225.5 million) in cash and EUR 87.8 million ($112.7 million) in Elan shares, plus up to EUR 270 million ($346.5 million) in milestones. AOP had 2012 revenues of about EUR 59 million ($75.7 million), according to Elan. The company also said it will pay $40 million to acquire a 48% stake in NewBridge Pharmaceuticals Ltd. (Dubai, UAE), which in-licenses products approved in the U.S., Europe and Japan to commercialize in the Middle East, Africa, Turkey and Caspian regions. Elan will have an option to acquire the remaining stake in NewBridge for $244 million by 2015.

Additionally Elan said it will spin out ELND005 -- which is in Phase II testing to treat agitation and aggression in patients with Alzheimer's disease (AD) and for the maintenance treatment of bipolar I disorder -- into newco Speranza Therapeutics Ltd. Elan will provide $70 million in funding, plus up to an additional $8 million. Elan CMO Menghis Bairu will be CEO of Speranza. Elan is developing ELND005, a small molecule that disaggregates beta amyloid fibrils, with Transition Therapeutics Inc. (TSX:TTH; NASDAQ:TTHI) under an amended 2006 deal. ...