BREAKING NEWS:
Biogen-Elan drug linked to brain disease
Shares of both companies plummet after-hours on disclosure of cases involving their multiple sclerosis drug and brain disease.
NEW YORK (AP) -- Shares of Biogen Idec Inc. and Elan Corp. PLC plunged after-hours Thursday after the companies reported two cases of a brain disease in patients treated with their multiple sclerosis drug Tysabri.
The companies disclosed the cases of progressive multifocal leukoencephalopathy in a regulatory filing with the Securities and Exchange Commission.
Shares of Biogen (BIIB) fell $12.26, or 17.6%, to $57.49 in after-hours trading. Shares of Elan (ELN) fell $7.60, or 37.9%, to $12.45.
Tysabri, which is produced and distributed in alliance between the two companies, was withdrawn from the market in 2005 after three clinical users of the drug contracted the rare brain disease, and two died.
But Elan and Biogen had reported no new cases since Tysabri's return to the market under restricted conditions in June 2006. The three 2005 cases involved patients who were simultaneously taking another MS-fighting drug; such combined therapy has been banned since 2005.
The patients in the most recent case had a history of taking other MS drugs but had been on Tysabri alone for at least 14 months, according to the SEC filing.Biogen and Elan plan a conference call on the report at 8:30 a.m. Friday.
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