ELAN, the Athlone-based pharmaceuticals company, has been dealt a blow after a rival to one of its leading drugs was approved by US regulators. The share dealt 2.5pc lower in New York yesterday.
Gilenya,
a drug used to treat multiple sclerosis, was approved unanimously
yesterday by the Food and Drug Administration drugs advisory committee
as part of the process that will see the drug eventually reach the
market in the US and worldwide.
While
the approval was expected, the committee unexpectedly approved the drug
as a potential first-line therapy, adding to the competition for Elan's
Tysabri. Gilenya is made by Swiss company Novartis.
Bloxham
stockbrokers were pessimistic about Tysabri's future. "With Tysabri
revenues already slowing in recent months, this announcement will do
little to boost investor sentiment in the stock and will lead to further
cuts in projected future Tysabri revenues."
Ian
Hunter at Goodbody said up to 10pc of patients now on Tysabri may
switch to Gilenya. "But we believe that Tysabri's undoubtedly superior
efficacy will continue to attract patients when they experience disease
breakthrough over time on other MS drugs, including Gilenya," he said.
