Shares in Irish drugs firm Elan rose 7 per cent today after it said it would ask Europe's Medicines Agency to clear its drug Antegren as a treatment for Crohn's disease in the fourth quarter of 2004.
Elan, which is developing the treatment with US partner Biogen Idec, said the decision came after final stage testing showed a statistically significant clinical response and remission rates in patients suffering from the bowel disorder.
Elan shares were at €19.75 by 1.20 p.m. on a buoyant Dublin bourse. They plunged to less than €2 in 2002 from a 2001 peak of nearly €74 on fears about its liquidity and a probe by US authorities into its accounting practices.
The Dow Jones Eurostoxx healthcare index was up 0.3 per cent at the same time. Analysts welcomed both the test data and the intention to file for European approval but said the news was tempered by the fact Antegren was not yet ready for US consideration.
"The test results are solid but if they had been sufficiently exciting to file in the US as well that would have been great news," said Stuart Draper at Dolmen Securities.
Elan has hauled itself back from the brink of bankruptcy by selling assets and slashing costs, and is pinning its hopes on Antegren, primarily as a treatment for the neurological disorder multiple sclerosis but also for rheumatoid arthritis and Crohn's disease.
Elan and Biogen Idec reiterated they would file US and European marketing applications for Antegren as an MS treatment before the end of the current quarter.
Analysts said details of the extent of the extra testing necessary for a US filing of Antegren as a Crohn's treatment might come out of a scheduled Elan webcast to discuss the latest test data later today.