Irish biotech Elan has announced completion of the separation of a substantial portion of its drug discovery business into a new independent, publicly traded company, Prothena.

Shareholders agreed at an extraordinary general meeting last week to split the company in two, with the new company, Prothena, to focus on early-stage drug development and research.

Prothena, which is incorporated in Ireland, today commenced trading on the Nasdaq market under the symbol PRTA.

Under the terms of the demerger, Elan shareholders on the register on December 14, 2012, the record date, received 1 Prothena ordinary share for every 41 Elan ordinary shares or ADSs held.

In addition a wholly owned subsidiary of Elan subscribed 26 million and received Prothena shares representing 18 per cent of the total outstanding ordinary shares of Prothena (as calculated immediately following the subscription by Elan).

Accordingly, on completion of the transaction, Elan shareholders directly and indirectly own 100 per cent of Prothena by virtue of their direct ownership of 82 per cent of Prothena’s outstanding shares and indirect ownership of 18 per cent of Prothena’s outstanding shares.

Elan will continue to own the rights to its multiple sclerosis drug Tysabri and certain other late-stage drug development candidates.

PA