RawGreed Requests, Elan Corporation, plc

Posted on November 29, 2005 , filed under Stocks | Print This Post

Paul S. writes,

ELN?

I’ve been watching ELN, Elan Corporation, plc, since April 2005, when the stock dropped under $4. Elan is a tricky situation to invest in. Elan is a company highly dependant on a single drug, Tysabri, regaining FDA approval. I read this article, “Elan Shares Jump As Tysabri to Get Review” that describes what happened to the company and Tysabri.

Here’s a quote from the article:

Its shares stood at a year-high 22.40 euros ($26.20) before Tysabri’s withdrew, and fell to a year low of 2.30 euros ($2.70) when prospects for the drug’s return appeared dim.

Prior to Elan’s problems with Tysabri, I was very bullish on the company. There are very few medications to treat multiple sclerosis that work. Tysabri was a breakthrough medication that seemed to hold great potential as a treatment for MS patients. The FDA will announce the results of its priority review for Tysabri in 6 months. If the FDA allows Tysabri to return to the market you can expect ELN to more than double its current price. For now, I believe the rise in price is based purely on speculation over the FDA’s review.

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