Failure of Alzheimer's Drug to Cost Elan $117m
THE FAILURE of one of its potential Alzheimer's treatments to get through clinical trials will cost Elan $117 million, the pharmaceutical group said yesterday.
Dublin-listed Elan's partners, Pfizer and Johnson Johnson, confirmed yesterday they were abandoning the development of bapineuzumab intravenous, a potential treatment for Alzheimer's Disease, after it failed to pass a second round of clinical tests.
Elan said in a statement that the decision would result in it taking a charge of $117.4 million in its third-quarter results to account for its investment in the development of the drug.
Both the statement and a spokesman pointed out yesterday that the decision also meant that Elan would no longer have to pay its share of the development costs.
The news sparked a sharp fall in Elan's share price in Dublin. Its stock closed 8.75 per cent down at [euro]8.43, its lowest since December last year.
Analysts yesterday said the news was disappointing for both investors and researchers.
Elan discovered the drug but three years ago enlisted Johnson Johnson and Pfizers as partners to develop it. If it had been successful the Irish company stood to get 20 per cent of any revenues generated.
The three are continuing to fund and work on the development of three other possible Alzheimer's treatments - a different version of bapineuzumab, a potential vaccine against the disease known as ACC001, and a third substance called AAB003.