Elan sends ISEQ reeling

The ISEQ-index suffered a massive blow this morning as pharmaceutical heavy weight Elan issued a warning to regulators that two more cases of brain disease have been linked to the company's multiple sclerosis drug Tysabri.

The Elan share price collapsed by more than 50% on the after two new cases of the brain disease PML were identified in patients using its drug Tysabri.

By 11.30am the shares stood at €7, down a staggering €6.50 or 48%, its shares yesterday stood at a €13.50 by close.

The new incidences are the first reported cases of the brain disease PML since Tysabri was re-introduced to the market two years ago.

The pharmaceutical firm says it will not be withdrawing Tysabri from the market as it has carried an explicit warning about the risk of PML since it was re-introduced in July 2006.

Elsewhere on the Irish market Bank of Ireland shone a faint beacon of hope for the finance sector as it made strong gains on opening, up 10c to €5.45.