Shares in embattled drugmaker Elan fell by more than 9 per cent yesterday as it emerged that the number of patients taken ill in trials of its experimental Alzheimer's vaccine had increased.
The latest blow to the troubled group followed a report in a US newspaper which said 12 people were seriously ill with brain inflammation after being inoculated with the vaccine. Elan had initially said that four patients out of the roughly 360 involved in testing the vaccine, known by its code name AN-1792, had been affected. A company spokesman confirmed that there were "several more cases" but declined to say exactly how many. "We are not keeping a body count. It is not appropriate."
Instead, the company was waiting for an independent committee, the Independent Safety Monitoring Board, to finish its review of the Alzheimer's study. When that was complete, Elan would make an announcement, he said.
On the Dublin market, the shares closed €1.45, or more than 9 per cent, lower at €14.50. In New York, where the bulk of trading in the shares takes place, they closed down 49 US cents, or 3. 56%, at $13. 26. Davy, brokers to the company, said the news looked "very damaging for the future prospects of this particular compound". But analyst Mr Jack Gorman said it would be "extremely premature" to dismiss Elan's entire Alzheimer's research programme on the back of the possible failure of one compound. "Development risk is a given in the pharma industry, especially at such early stages in the trial process. Indeed, the fact that Elan is clearly breaking new ground in this area only adds to the risk profile."The news on the vaccine is the latest in a line of setbacks for Elan. The downward spiral in its share price began in January when the company announced it was suspending tests of the Alzheimer's treatment, seen in the market as one of Elan's future "blockbuster" drugs, when four patients fell ill.
Allegations of Enron-style accounting practices at the group and news that the US Securities and Exchange Commission was investigating added to the company's woes.
Shares in the company fell further this month after the company warned that profits would fall this year and revenue growth would be slower than anticipated. At last night's Dublin closing price of €14.50, the shares were trading more than 71 per cent below their January high of €50.27.
