Positive results from Elan and Biogen
In a study of 942 patients, the Antegren drug treatment reduced the rate of relapses in sufferers of the disease by a figure of 66%. As a result, the two companies have submitted applications for the approval of Antegren as an MS treatment in the US, EU, Canada and Australia.
These results follow a 12-month trial using Antegren. Two-year figures will be available in the first half of 2005, Elan said.
The good news impacted sharply on Elan’s share performance and the share was up 10% to €23.50 in Dublin by lunchtime.
It fell back in afternoon trading to €22.64, representing a 6% rise on the day.
At its highest, Elan’s shares hit €73.80 per share before being severely censured by the New York Stock Exchange for the presentation if its accounts.
That resulted in the share price plummeting to €2 and the resignation of its chief executive.
Since the start of 2004 the share price has quadrupled, boosted by the drugs it has in the pipeline. Peter
Jackson of Bloxham Stockbrokers says yesterday’s news augurs well for the firm.
In late October, shares in the pharmaceutical group rose 5% on the day the company said it was optimistic it would return to profitability by 2006.
That was on October 28 when the group reported slightly worse-than-expected third-quarter figures showing a net loss per share of 28 cents.
Its total loss for the period was $107.8m, compared with a loss of $91m the same time last year. Sales for the three-month period from July to September amounted to $101.1m, a 23% fall from the $131.2m reported in Q3 2003 and well below expectations of $110.3m.
On the day of the results, Elan said its focus was “on preparing for a successful launch of Antegren.”
It hoped to bring this on the market early next year, it said.
It indicated at the time it was waiting for regulatory approval for the drug as a treatment for multiple sclerosis after it was fast-tracked by the US Food and Drug Administration for approval.
Yesterday’s announcement brings that achievement a step closer.
Analysts are also looking forward to the results of a Phase 3 study into a new drug and its potential in the treatment of Crohn’s disease.
This is due in the first half of next year. The group is also working on the successful launch of its painkiller drug Prialt.
Elan continued to report net losses in the last quarter as it dealt with outstanding legacy issues, including the streamlining of the balance sheet.
Investment for a successful launch of Antegren and Prialt, were primary considerations, the company said.
It was optimistic the dedication, commitment and financial resources would be reflected in a return to profitability in 2006.
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