Elan to benefit from US approval of new MS drug

US REGULATORS have approved a drug that improves the walking ability of patients with multiple sclerosis. The drug was developed using technology created by Elan.

Accorda Therapeutics is the first company to receive approval for a drug addressing the condition. Its Amprya drug was developed using Elan’s Mxdas technology, which controls the release of the drug in the body.

The announcement is a boost for Elan’s EDT business, based in Athlone. The Mxdas technology was developed there and this is the first drug using it to receive US approval, according to the company. Amprya will be manufactured at the Athlone plant.

Merrion analyst Sam Farthing writes in a note to clients that, although expected, the approval is positive for Elan “as this drug will be the main driver for the EDT business over the coming years”.

Elan can expect royalties of around 17 per cent of revenue, according to analysts. Estimates suggest the drug could generate sales of more than $500 million (€353 million).

Separately, Biogen, Elan’s partner in its breakthrough MS drug Tysabri, has announced it will resume providing updates on the incidence of the brain disease PML in patients using the drug.

Last week, European regulators said they had identified 31 cases of the disease in patients – 23 in patients using the therapy for more than two years.