Multiple sclerosis drug boosts Elan shares

ELAN shares continued to gain ground yesterday, rising by almost 3% after it asked the US drug regulator to have multiple sclerosis treatment approved for release.

The company said it made the application based on results from trials of the treatment with patients, and said it had the potential “to become an important new therapy” for multiple sclerosis.

The application was made to the US Food and Drug Administration, which will have to decide if the treatment is suitable to be released for patients.

Shares in Elan rose by nearly 3% on the New York Stock Exchange in early trading.

Elan, which is developing the drug with US pharmaceutical firm Biogen Idec, said one million people worldwide would benefit from the treatment.

Elan last week submitted Antegren with European drug regulators to get it on the market to treat the chronic bowel disorder Crohn’s disease and rheumatoid arthritis.

Brokers said that the application was lodged slightly ahead of schedule, which signaled positive trial results.

The drug is seen as a major step towards returning Elan to financial health.

The company spent most of 2003 selling off assets to prevent a liquidity crisis.

It has also shed hundreds of jobs and faced paying off $2 billion in debt.

Elan saw its shares crumble in early 2002 after questions were raised about how it accounts for some off-balance sheet investments.

This prompted an inquiry by US market regulators with the outcome of this still not decided.

Since then the shares have recovered, rising by more than 300% this year on the outcome of its recovery plan and positive news on future drug development.