Elan hikes Tysabri vial 21pc to $2,185
Saturday June 10th 2006
DRUGMAKER Elan has hiked up the price of its multiple sclerosis treatment Tysabri by 21pc ahead of its return to market next month.
The medicine will cost $2,185 a vial when it re-enters the US market following its withdrawal after links to a deadly infection last year.
Tysabri, which is administered 13 times a year, will rise to $28,400 from $23,500 a year per patient, according to Goodbody Stockbrokers analyst Ian Hunter.
By comparison, a similar treatment, Serona's Rebif, costs €22,875 while Schering's Betaseron costs $19,289.
A number of analysts had expected that the price of Tysabri would increase by about 10pc.
Mr Hunter said the increase gives the broker further comfort in its numbers and believes it will act as a support to the share price at current levels. Shares in Elan finished the day up 3c at €12.38, having fallen earlier in the day.
"The increase takes account of general price inflation in competing MS therapies in the intervening period, and also the additional costs associated with the risk-management," said Jack Gorman, analyst at Davy Stockbrokers.
Last month Elan chief executive Kelly Martin said it was in pricing discussions with its research partner Biogen.
"The whole market has moved up by 20pc to 30pc," he said at the time.
"This is a major topic for us."
Tysabri was withdrawn in February 2005 after two patients taking the treatment died of PML, the potentially fatal brain disease.
Following its return to the market, the risk management plan calls for the medicine to be given once every four weeks in an infusion centre.
"Tysabri will be available upon the completion of key activities related to the risk management plan ... As such, Elan and Biogen Idec anticipate Tysabri will be available in July," Elan said in a statement.
US health officials cleared the way on Monday for Tysabri, developed with Biogen Idec (Research), to return to the market with restrictions, following its withdrawal last year.
Ailish O'Hora
http://www.unison.ie/business/stories.php3?ca=80&si=1631352
DRUGMAKER Elan has hiked up the price of its multiple sclerosis treatment Tysabri by 21pc ahead of its return to market next month.
The medicine will cost $2,185 a vial when it re-enters the US market following its withdrawal after links to a deadly infection last year.
Tysabri, which is administered 13 times a year, will rise to $28,400 from $23,500 a year per patient, according to Goodbody Stockbrokers analyst Ian Hunter.
By comparison, a similar treatment, Serona's Rebif, costs €22,875 while Schering's Betaseron costs $19,289.
A number of analysts had expected that the price of Tysabri would increase by about 10pc.
Mr Hunter said the increase gives the broker further comfort in its numbers and believes it will act as a support to the share price at current levels. Shares in Elan finished the day up 3c at €12.38, having fallen earlier in the day.
"The increase takes account of general price inflation in competing MS therapies in the intervening period, and also the additional costs associated with the risk-management," said Jack Gorman, analyst at Davy Stockbrokers.
Last month Elan chief executive Kelly Martin said it was in pricing discussions with its research partner Biogen.
"The whole market has moved up by 20pc to 30pc," he said at the time.
"This is a major topic for us."
Tysabri was withdrawn in February 2005 after two patients taking the treatment died of PML, the potentially fatal brain disease.
Following its return to the market, the risk management plan calls for the medicine to be given once every four weeks in an infusion centre.
"Tysabri will be available upon the completion of key activities related to the risk management plan ... As such, Elan and Biogen Idec anticipate Tysabri will be available in July," Elan said in a statement.
US health officials cleared the way on Monday for Tysabri, developed with Biogen Idec (Research), to return to the market with restrictions, following its withdrawal last year.
Ailish O'Hora
http://www.unison.ie/business/stories.php3?ca=80&si=1631352
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