Elan to restart MS drug trials

IRISH brokers reacted positively to the partial lifting of restrictions on Elan and Biogen's multiple sclerosis drug, Tysabri.

This followed the decision by the US Food and Drug Administration (FDA) to allow trials of the drug to restart.

NCB and Goodbody put a buy on the stock yesterday following the announcement on Wednesday that clinical trial dosing can resume on patients who took part in the Phase III tests.

It was withdrawn a year ago today following the deaths of two patients.

In Dublin the shares closed at €12.20, up 25 cents, an increase of 2.09%.

Patients that participated in Phase III will now be eligible for enrolment in an open-label extension study, which is set to begin in the US in the coming weeks.

About 2,000 MS patients participated in the safety evaluation worldwide. Meanwhile, the companies are also in discussions with the European regulator to resume dosing in Europe.

Ian Hunter of Goodbody Stockbrokers said "this move brings Tysabri one step closer to the market, signalling, as it does, the FDA's willingness to allow Tysabri to be administered to patients who have already been on the drug for over two years".

NCB analyst Orla Hartford said they continue to believe that the FDA will approve the re-launch of Tysabri as a monotherapy in the US for MS patients.

"Our forecasts assume that Tysabri can achieve 16% market share in the US and 13% market share in the MS market in Europe in 2010, which can support a revenue potential of $1.8 billion (€1.51bn) for use in MS alone."