) recently announced that the first patient in its phase IIa
study on ELND005 has been dosed. Elan is developing ELND005 for
the treatment of Down syndrome.
BIOGEN IDEC INC (BIIB): Free Stock Analysis
ELAN CP PLC ADR (ELN): Free Stock Analysis
PERRIGO COMPANY (PRGO): Free Stock Analysis
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The phase IIa study will be evaluating the safety and
pharmacokinetics of ELND005 compared to placebo in young adults
suffering from Down syndrome without dementia, and will also
include select cognitive and behavioural measures.
The company mentioned in its press release that currently there
are no approved drugs for the treatment of cognitive dysfunction
in Down syndrome.
Apart from Down syndrome, ELND005 is also being developed for the
treatment of Alzheimer's disease (AD). In Jul 2013, the U.S. Food
and Drug Administration (FDA) granted fast track designation to
ELND005 for the treatment of neuropsychiatric symptoms in AD.
Elan was currently in the news as
) announced its intention to acquire the Irish company for
approximately $8.6 billion. The cash and stock deal, cleared by
the boards of directors of both companies, is expected to close
by the end of calendar year 2013.
Following the closure of the deal, the shareholders of Perrigo
will own approximately 71% of the merged entity while Elan
shareholders will possess the balance. As per the terms of the
deal, each stockholder of Elan will be entitled to receive $6.25
per share in cash from Perrigo following the closure.
Furthermore, each shareholder of Elan will receive 0.07636 shares
of the merged company for each Elan share.
We note that Elan currently receives royalty payments at 12% on
worldwide net sales of the multiple sclerosis drug, Tysabri,
after it sold the drug's stake to
Biogen Idec Inc.
) in April this year. After the first year, Elan is expected to
receive a royalty of 18% on up to $2 billion of global net sales
of Tysabri and 25% thereafter on over $2 billion of global net
sales of Tysabri.
Elan presently carries a Zacks Rank #2 (Buy).
WuXi PharmaTech (Cayman) Inc.
) also carries a comparable rank.