ELN - Sector: Healthcare - Industry: Biotechnology & Drugs

[kslifka]

ELN continues to do well.  Price action holding above breakout point with above average volume.

[setravis]

Elan Surges on Drug Trial.......

[setravis]

"ELN" Threads have been Merged......."Again"
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                                                    
All history on a stock pick in 1 thread is awesome.                                                      
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.                                                 
Thank You....and good luck with all your trades....make some $$$   

 

[setravis]

Look out below.......

Another Murdered stock !
on possible overreaction, as the market often does.

See what happens after 2 days of disaster news!

52wk Range: 9.55 - 37.45
Volume: 137,626,089
Avg Vol (3m): 9,570,360
Market Cap: 4.70B
P/E (ttm): N/A
EPS (ttm): -0.696
Div & Yield: N/A (N/A)

Technicals
Record Price Low
Most Actives
Gap Down
Percentage Loser
Price Loser

Last Price Quote is:
-63.33%below 13-day MA
-66.46%below 50-day MA
RS Rating: 3 

Fundamentals
Key Data:
Market Cap (M): $4,707.40 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 10/23/2008
Last Analyst Rating: Sell

[setravis]

Biogen's Business Update
Zacks Equity Research, On Thursday January 13, 2011, 11:45 am EST

Biogen Idec (NasdaqGS: BIIB - News) recently provided an update on its pipeline and "Framework for Growth" program at the J. P. Morgan Healthcare Conference.

Business Update

Biogen had initially announced its "Framework for Growth" program in November 2010. With this program, Biogen is looking to streamline its operations and increase efficiencies. The program includes initiatives like streamlining of operations, shutting down of facilities, and workforce reduction.

Biogen reported that it has closed its San Diego facility and is consolidating sites in Massachusetts. The company has reduced its workforce by about 13% and expects to realize annual cost savings of about $300 million.

Tysabri Update

In December 2010, Biogen and partner Elan Corporation (NYSE: ELN - News) submitted applications in the US and the EU seeking approval for updating the label of their multiple sclerosis therapy, Tysabri. The companies are seeking permission to include anti-JC Virus antibody status as one potential factor that could help stratify the risk of progressive multifocal leukoencephalopathy (PML) occurring in patients treated with Tysabri. A response should be out later this year.

Biogen said that it continues to work on expanding Tysabri's utilization across the world. The company estimates that as of the end of Dec 2010, about 56,600 multiple sclerosis patients were on Tysabri therapy worldwide. The company estimates new patient additions stood at 1,700 in the fourth quarter of 2010.

We note that new patient additions declined on a sequential basis. The company had reported new patient additions of 2,300 in the third quarter of 2010.  With new patient additions declining to 1,700 in the fourth quarter of 2010, we remain concerned that an increase in the number of PML cases associated with the use of the drug could hamper new patient additions.

Pipeline Update

Besides providing an update on Tysabri, Biogen provided an update on its pipeline. Biogen announced that it no longer intends to focus on the development of oncology and cardiovascular products. The company is looking to divest these products/candidates, which should allow it to focus on neurology and biologics instead. Biogen is developing candidates for neurodegenerative diseases like Parkinson's, Alzheimer's and amyotrophic lateral sclerosis (ALS).

Biogen expects to launch five new products by 2015. Key pipeline candidates include dexpramipexole (phase III scheduled to commence for the treatment of ALS), BG-12 (phase III oral multiple sclerosis candidate), daclizumab (phase II ongoing for relapsing multiple sclerosis), and rFVIIIFc (global registrational trial ongoing in previously treated hemophilia A patients).

Biogen is yet to gain EU approval for fampridine for improving walking in patients with multiple sclerosis. The company reported that it received a letter of deficiency in Canada for the candidate.  A response from the EU regulatory authority should be out later this month.

Day's Range: 6.71 - 6.91
52wk Range: 4.35 - 8.24
Volume: 1,963,046
Avg Vol (3m): 2,826,790
Market Cap: 4.01B
P/E (ttm): N/A
EPS (ttm): -0.54
Div & Yield: N/A (N/A)


Technicals
Last Price Quote is:
5.26%above 13-day EMA
14.97%above 50-day EMA
RS Rating: 68 

[setravis]

Xoma and Elan: A Tale of Two Mismanaged Biotech Companies, Part 2

ELAN

Although investors' fury at Elan's management is understandable and legitimate, the management's mistakes should not blind them to fairly assessing this firm, which has contributed to science and drug development more than most other drug developers, small and large. There is reason to believe that this contribution to science is the main reason behind the firm's financial debacle. Nevertheless, Elan's science, scientists, their discovered disease pathways, and the technologies they created have advanced the understanding of neurological diseases and made possible the management of diseases yet to find treatments. While drug companies design, discover and develop drugs that target validated pathways of diseases, Elan, itself, discovered the pathways of diseases for the drugs it designed and developed. In neuropathology, Elan's research and findings have enriched the medical libraries with breakthrough knowledge about the pathophysiology of diseases such as Alzheimer's disease, Parkinson's disease and multiple sclerosis.

The firm developed several products for Alzheimer's disease based on its understanding of the disease pathways. In addition to its small molecule inhibitors of beta secretase and gamma secretase, the firm developed small molecule drugs that target neurotrophic receptors that could protect vulnerable people's neurons. It identified unusual forms of alpha-synuclein, a major component of Lewy bodies, which is a signature characteristic in the brain tissue of Parkinson's disease patients. This finding has led to therapeutic targets that are the focus of Elan's new drug discovery efforts.

It was Elan's scientists who discovered the role of the selective adhesion molecule, alpha 4 integrin protein, in the etiology of multiple sclerosis and other autoimmune diseases, including Crohn's disease. Alpha 4 integrin has a role in the movement of immune cells from the bloodstream into the tissues in response to inflammation. Elan's breakthrough selective adhesion molecule inhibitor Tysabri® (natalizumab) is approved for the treatment multiple sclerosis and Crohn's disease. Yet, Elan's scientists continue to investigate new small molecule inhibitors that block alpha 4 integrin and may selectively block immune cell traficking. The firm's scientists are also studying signaling molecules that may be involved in the brain inflammation characteristic of secondary progressive MS. The firm aims at disrupting the pathway of chronic inflammation-neurodegeneration that causes permanent disability in advanced MS.

In addition to illuminating the molecular pathological pathways, selecting therapeutic targets, and designing evidence-based drugs, Elan created state-of-the-art technologies that enhance the safety and efficacy of products and, even better, make possible the development of products that lacked the physicochemical requirements of therapeutics. Elan's two important technologies, NanoCrystal technology and drug delivery technology have contributed to improving the actions, effects and side effects of several drugs.

That said, the question remains: does the resentment of the management's mistakes prevent us from trying to determine a fair value for this firm at the current stage?

Final word: Again, we prefer to be objective and do our homework, including taking into consideration the harm that resulted from the management's miscalculations. This harm, which has been financial, has reached a stage where it had to slow, if not halt, the firm's scientific ambitions, which, together with other unexpected circumstances, like the unexpected risk of progressive multifocal leukoencephalopathy (PML) as a side effect of Tysabri, caused the accumulation of large dept. Elan had to downsize. It did. It had to reform. It did. Still finding itself in a disagreeable territory, it had no option left but to relinquish most of its Alzheimer's disease programs. It did. It then thought to dispose of its drug delivery technology to get rid of the rest of its dept. It did not.

This surprising hesitation of Elan to execute its own plan has probably been the firm's belief that Tysabri's sales could do the financial miracle now that the firm has already filed to include the anti-JC Virus antibody status test in Tysabri's product labeling. The decrease, or elimination of the risk of PML, which has prevented the breakthrough drug from becoming a blockbuster drug, will, indeed, produce the miracle that would resurrect this firm.

Elan has marketed products that bring to its coffers over $1.1 billion. Around 60% of this revenues comes from Tysabri, which it partnered 50-50 with Biogen Idec (BIIB). The firm is still offering its services for other firms through its technologies, and will continue to cash in royalties on products that have been approved and marketed for other firms. The latest apparent blockbuster drug Ampyra for MS leg walking difficulties was developed for Acorda (ACOR) Therapeutics with Elan's technology; it had an excellent market penetration.

Tysabri is still the most effective MS drug on the market. Further diminishing the risk of developing PML would lead to sales that would generate between $2.5-$3.0 billion a year. The drug is approved in more than 45 countries; for relapsing forms of multiple sclerosis (MS) in the U.S. and for relapsing-remitting MS in Europe. It is not unrealisted to expect that both the U.S. and EU would expand their approval of the drug to both indications. Elan's current revenue increase was driven by the growth of Tysabri and the launch of Ampyra.

To make the story short, Elan is insured by Tysabri. We believe Elan will either be resurrected by Tysabri, or be taken over because of Tysabri. Either way would be rewarding to the shareholders.