Elan shares gain nearly 5% as MS drug planned

SHARES in Elan gained nearly 5% yesterday after the drug group said it was looking to launch a treatment for Multiple Sclerosis (MS) in Europe.

The company said it intended to submit an application to the European Agency for the Evaluation of Medicinal Products for approval to launch Antegren as a treatment for MS this summer.

Elan and its partner, Biogen Idec, said the decision was based on data from Phase III trials of the treatment. It did not disclose the results from the trials, but as they are only half way through the testing programme, analysts said the results would be positive.

Shares in Elan, which have tripled in the past year, gained a further 4.9% yesterday.

Last month the company said it was looking for approval from US drug regulators a year ahead than expected to use Antegren as a treatment for Crohn’s disease and rheumatoid arthritis.

If the approval is granted, Antegren could be on the market by early next year. The drug has the potential to be a blockbuster, capable of selling hundreds of millions a year.

Stockbrokers Wood MacKenzie forecast sales of $100 million in 2005 rising to nearly $300m in 2007.

The drug launch next year would be a huge boost to Elan which has been hit by accounting problems and an investigation by the US financial watchdog, the SEC.

The outcome of this inquiry is expected in the next few months after two years of investigations.

The company has been forced to sell a large chunk of its assets in order to combat a cash crunch.

The success of treatment such as Antegren is vital to the continued health of the drug maker.

NCB Stockbrokers said in a research report yesterday: “The early European filing ... further supports the market potential for the product.

“The European market for multiple sclerosis therapies is less penetrated than the US and Antegren has the opportunity to significantly expand the market in Europe.”