Elan sell-off continues as positive drug trial results boost share prices

ROLL up, roll up, the great Elan sell-off continues and the more the company sells off the higher its share price goes.

Long-term Elan shareholders, now used to magical mystery tours along the high and lows of the share price bar chart, have ended yet another week in a twirl as the shares first rose and then slid again.

However, the underlying trend is positive. A year ago, on Friday, January 24, Elan shares closed at €3.44, a long way from the heady days of 2001 when the shares hit €65 but came crashing down as a result of a post-Enron accountancy problem. Yesterday, shares closed at €6.95, down 3.47% on the day, but well up on the year low of €2.05.

The first respite shareholders in Elan got this year was .on January 8, when shares in Elan surged 11% on good news for painkiller Prialt.

Elan revealed its recent Phase III trial for Prialt had met its primary end-point in patients with severe chronic pain who had not achieved pain relief with other therapies. The firm said it expects to bring the treatment to market no later than the first quarter of 2005.

Not exactly the blockbuster drug the company needs, as potential sales are not in the major league, but crucially, it was positive news that at last Elan was back in the game.

This week, Elan announced sell-off deals, worth around 90 million in cash, in order to further reduce their colossal debts.

Elan chief executive Kelly Martin said: "These transactions are consistent with our strategy of focusing our resources on our core therapeutic focus areas, developing our pipeline, and bringing innovative science to patients. They represent further success in our commitment to reposition Elan for the future."

Elan was rated a buy by Goodbody stockbrokers yesterday morning.