Seeking Alpha: Prothena's Early-Stage Assets Hold Exciting Potential

Biotech in general is still pretty hot, and orphan drugs development is hotter still. Even allowing for that background of bullishness, I think there may be worthwhile value still remaining in the shares of Prothena (PRTA). It must be noted, though, that Prothena is extremely early-stage and in more normal markets I would expect analysts and investors to assign much lower odds to the company's pipeline. Even so, the science here appears pretty solid and Prothena has the added benefit of backing from the world's largest developer of antibodies.

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Prothena's Early-Stage Assets Hold Exciting Potential

Investopedia: Elan Continues To Make Baffling Strategic Decisions

When Elan (NYSE:ELN) announced back in February that it was selling its interests in Tysabri to Biogen Idec (Nasdaq:BIIB) my biggest concern was that Elan management would waste the proceeds. Elan management had made a series of questionable (if not bizarre) decisions prior to the Tysabri announcement, and I had minimal confidence that they would do the right thing – which, in my opinion, was simply to sell off the remaining assets and write a check to shareholders. Since then, the company's two major strategic decisions only reinforce my worries that Elan shareholders are not going to be well-served by management in the deployment of this cash.

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http://www.investopedia.com/stock-analysis/052113/elan-continues-make-baffling-strategic-decision-eln-thrx-gsk-prta-sny.aspx

Seeking Alpha: Post-Tysabri, Will Elan Waste The Windfall?

It was no secret that Biogen Idec (BIIB) wanted to gain 100% control of the successful MS drug Tysabri, but it was likewise no secret that the company had virtually no interest in acquiring its partner Elan (ELN). As a result, Wednesday's announcement that Biogen Idec will buy all rights to Tysabri looks like a win for the company, provided the drug continues to grow.

The question is whether Elan shareholders will really benefit from this deal. Pulling forward the Tysabri revenue stream certainly de-risks part of the story, but now investors have to contend with the question of how management will handle that cash. At this point, I'm not optimistic as the plans laid out by Elan management suggest that they have a much higher opinion of their capabilities than the facts would seem to support.

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Post-Tysabri, Will Elan Waste The Windfall?