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IBDvalueinvestin (98.29)

2 Drug stocks rose from the Dead, another is Poised to do the same.



May 11, 2009 – Comments (6) | RELATED TICKERS: DNDNQ , VNDA , ELN.DL2

DNDN from under $5 to $20's in days

VNDA from under $1 to $10's in days.


ELN from $6 to ??


* New data shows flagship Tysabri drug may reverse MS damage

* Shares up 10 percent

(Writes through with market reaction, analyst comment)

DUBLIN, April 29 (Reuters) - Elan's (ELN.I) Tysabri drug may be able to reverse damage caused by multiple sclerosis, the Irish drugmaker and its U.S. partner Biogen Idec (BIIB.O) said on Wednesday, boosting Elan's shares 10 percent.

Data released by the companies at the American Academy of Neurology showed Tysabri promoted the regeneration of the protein coat that protects nerve fibres and whose damage causes the symptoms of multiple sclerosis.

"This provides more evidence that Tysabri may not just slow down the progress of MS but also may be able to reverse the damage caused by the disease," Goodbody analyst Ian Hunter said in a note.

Tysabri, which is given by infusion, is the most effective drug on the market, reducing the relapse rate in patients with multiple sclerosis by 68 percent.

But sales have been crimped because of its link with progressive multifocal leukoencephalopathy, or PML, a potentially deadly brain infection.

Elan's shares have lost almost three-quarters of their value over 12 months due to concerns over the safety of Tysabri, disappointing results from a trial of its experimental Alzheimer's vaccine and uncertainty over its future.

Its stock traded 10 percent higher by 0911 GMT at 4.8 euros, outperforming a 3 percent stronger wider Irish market .ISEQ.

Elan said last week it was seeking a partnership with a big pharmaceutical company, after reporting a 14 percent rise in first-quarter revenue and a wider net loss.

Swiss drugmaker Novartis AG (NOVN.VX) and Germany's Merck KGaA (MRCG.DE) are leading the charge to develop multiple sclerosis drugs that can be taken orally, rather than by infusion or injection. (Reporting by Andras Gergely; Editing by David Cowell)

6 Comments – Post Your Own

#1) On May 11, 2009 at 2:03 PM, IBDvalueinvestin (98.29) wrote:

or could it be a buyout as a rumor site indicated today:

May 11, 2009 08:40 ET  (ELN) Rumor that Lunbeck will make a cash bid for ...

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#2) On May 11, 2009 at 2:16 PM, portefeuille (98.90) wrote:

that was the rumor on Tuesday (Lundbeck) ...

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#3) On May 11, 2009 at 2:17 PM, portefeuille (98.90) wrote:

(correction: on Monday, May 4)

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#4) On May 11, 2009 at 3:36 PM, EverydayInvestor (< 20) wrote:

The problem facing Tysabri is that it causes progressive multifocal leukoencephalopathy (PML), a disease that causes quick death. Given a choice between a small chance of a very quick death and a somewhat greater likelihood of incapacitation, the logical choice is to choose the much safer but slightly less effective interferons.

It is not only Tysabri that causes PML; several of the more interesting MS drug candidates that act to suppress the immune system also cause PML. Simply stated, unless this problem can be eliminated (an unlikely event), Tysabri will never be a blockbuster and will only be used to treat those for whom other treatments have failed. 

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#5) On May 11, 2009 at 3:38 PM, EverydayInvestor (< 20) wrote:

I suggest all ELN investors learn more about PML

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#6) On October 20, 2011 at 12:38 PM, JohnSnow1337 (< 20) wrote:

Tysabri was drawn back from the market in 2005 due to the pml complications, however the patients were all against the withdrawal. Bases on later released information the 3 death from pml during trials were caused by other interference, not Tysabri alone. The drug was re-released in 2006 and its a very popular choice for MS treatment. It is true that progressive multifocal leukoencephalopathy prognosis is bleak, but patients with severe MS symptmos like, loss of sight, movement disability are more then willing to take the 1.8/1000 risk. Another important factor is the administration schedule, which is also suitable and preferred by many MS patients.Tysabri is usually administred at six month periods, which is much more preffered then a monthly, weekly injection.

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