Elan has to get nod for MS drug

DESPITE $1 billion debts due in 2008 and growing class actions from shareholders, Elan hopes to get Tysabri a clean bill of health in the coming months.

Since being withdrawn on February 28, the multiple sclerosis drug, developed jointly by the Irish drugs company and its US partner Biogen, the shares have lost 75% of their value.

Analysts say the group faces two tough tests if it is to survive. It will have to meet its $1bn debt when it falls due in 2008 and it needs to have Tysabri reinstated by the Food and Drugs Board in the US.

Finance director Shane Cooke says the group will be able to meet its debt repayments when they fall due.

Powerful and influential US bankers Merrill Lynch disagree.

However, they nonetheless, believe Tysabri will make it back to the market even if on a restricted basis.