Elan's partner in the development of Tysabri, Biogen Idec, yesterday withdrew an earnings forecast it issued three weeks before the February suspension of sales of the multiple sclerosis drug.
Biogen had projected 2005 earnings per share, excluding one-time items, of between $1.60 (€1.24) and the low $1.70. Analysts were forecasting $1.60, on average.
Biogen shares, which have fallen nearly 50 per cent since sales and clinical trials of the drug were suspended on February 28th, slipped slightly following the news.
Separately, Dr Bill Rastetter, executive chairman, of Biogen said yesterday that Biogen was writing down the value of its Tysabri inventory on the basis that the chances of it being used was now below 85 per cent.
The statement to delegates at Lehman Brothers' 8th annual global healthcare conference reflected fears about the prospects for the drug's return to the market. However, Dr Rastetter said the company was continuing to manufacture the suspended drug, albeit at a reduced level.
"Biogen has other engines to survive on, but providing the growth that was expected will be a challenge," said Sena Lund, an analyst at Cathay Financial. - (Reuters)
