Forget that it keeps losing money. The news keeps getting better for Elan
This morning, the drug developer announced it would file for FDA approval of Antegren in mid-2004, a year earlier than expected. If approved, the highly touted multiple sclerosis treatment could be on the market by 2005.
Elan shares jumped a whopping 33% to $11.75 in afternoon trading, and Biogen Idec
I'm reminded of a similar scenario just over a year ago, when Millennium Pharmaceuticals
In this case, Elan and Biogen Idec's decision "was made after discussions with the FDA of one-year data from the two on-going two-year Phase III trials in MS." As such, one would think that Antegren stands a good chance for success.
Excitement over Antegren overshadowed Elan's earnings report. Year-over-year comparisons still look ugly because of its massive divestitures, but fourth-quarter revenue from retained products continued to grow, climbing 45% to $107.8 million. The company nonetheless reported negative earnings before interest, taxes, depreciation, and amortization (EBITDA) of $34.9 million and a net loss of $0.88 per share.
Last month, it was Prialt. This month, it's Antegren. Elan expects negative EBITDA again for 2004, but at least the news keeps getting better.
Give us your take on the Elan discussion board.
Jeff Hwang doesn't own any of the companies mentioned.