Markets upbeat on deal

Elan Corporation and Pharmacia Corporation have entered into a research programme for the treatment of Alzheimer's disease. The announcement was greeted enthusiastically by the markets and Elan's shares rose by 70 cents to €59.30 on the Dublin stock market. On Nasdaq they rose $ 1/8 to $53 5/8. Under the agreement, Elan and Pharmacia will pool their scientific resources and intellectual property and share all costs and revenues associated with research, development and marketing. Financial terms of the agreement have not been disclosed.

This deal follows the marketing authorisation Elan received earlier this month from the European Commission for a new treatment for breast cancer. That announcement led to a 7.5 per cent rise in the Elan shares to €59.43 on the Dublin stock market. Elan said approximately four million people in the United States have Alzheimer's including one person in 10 over age 65, and almost half of all persons over age 85.

Mr Donal Geaney, chairman and chief executive officer of Elan said "we are excited to be teaming up with Pharmacia to advance our Alzheimer's research efforts in the area of beta-secretase. Pharmacia has extensive expertise in the area of beta-secretase as well as substantial scientific resources, making them an ideal partner to expedite the development time and eventual commercial success of any product resulting from the collaboration. By pooling our collective resources, we believe this collaboration represents a truly significant discovery effort in the field."

Pharmacia also welcomed the deal and pointed to the insights its researchers have gained into the biochemistry of Alzheimer's disease. It is a global pharmaceutical company created through the merger of Pharmacia & Upjohn with Monsanto and its G D Searle unit.