$6.58
0.38 (+6.13%)
Elan Corp, plc (ADR) (ELN)
CAPS Rating:
The Company's Biopharmaceuticals unit is engaged in research, development and commercial activities and its EDT unit focuses on product development, scale-up and manufacturing to address drug optimization challenges of the pharmaceutical industry.
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ELN has an amazing chart over the last month, with two enormous gaps down within the same week: one after the revelation that their candidate Alzheimer's drug in phase II trials had only mixed effectiveness; and then, a couple of days later, another gap down after the report of two cases in Europe of brain infections suspected to be related to Tysabri. My take on this is that at least the second gap down was way overdone. The Tysabri side-effect problem was already well known, and I think investors' reaction to that announcement was pure panic, fear feeding on the loathing engendered a couple of days earlier with the Alzheimer's drug trial results.
The consequence, in my view, was a fantastic buying opportunity akin to ELN's crater in 2005 after the FDA temporarily withdrew Tysabri from the market. For all the gravity of its rare but apparently lethal side effects, Tysabri is currently the most effective treatment for the most severe cases of MS. Balancing the known risks against the very significant benefits of Tysabri for the appropriate patients, there seems little doubt that it will continue to be used.
Seems to me that the stock should be good to at least fill in the 2d gap, back up to the low 20's ... and maybe then some.