Elan sign US$50m development deal with Proteostasis Therapeutics
Dublin – Ireland’s Elan Corporation plc has paid US$50m to access Proteostasis Therapeutics’ pipeline of proteostasis regulators, peptidomimetic compounds that regulate protein folding, protein aggregation and protein degradation through the ubiquitin-proteasome pathway. Elan stated the companies’ approaches to find treatments against neurodegenerative disorders such as Parkinson’s, Huntington’s, multiple sclerosis and amyotrophic lateral sclerosis (ALS), or Alzheimer’s were complementary. Besides an equity investment of US$20m, Elan said it would invest up to $30 million milestone-dependently in collaboration funding over five years. As part of the agreement, Elan will become an approximate 24% shareholder in Proteostasis, obtained a right of first negotiation to exclusively license compounds emerging from the combined initiative and will have the right to a seat on the Proteostasis board of directors as well as its scientific advisory board.