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Biogen, Elan in drug pact
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August 17, 2000: 1:13 a.m. ET
U.S., Irish firms in deal to develop successor to MS treatment Avonex
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LONDON (CNNfn) - U.S. based Biogen Inc., one of the world's biggest biotech companies, and fast-growing Irish drug maker Elan Corp. joined forces Thursday to develop and market an experimental treatment for multiple sclerosis and Crohn's disease.
Cambridge, Mass.-based Biogen (BGEN: Research, Estimates), which is seeking a successor to its successful MS treatment Avonex, and Elan, a Dublin drug maker also working on potential Alzheimer's disease therapies, will work together to develop and market the drug, known as Antegren. The proposed treatment is nearing completion of mid-stage Phase II clinical trials.
Biogen's Chief Executive Officer Jim Mullen said Antegren had "blockbuster potential" and that he believed the worldwide market for multiple sclerosis drugs would approach $3 billion by 2005, Reuters reported Thursday. The current estimated value is $1.8 billion.
No financial details of the pact were disclosed. Biogen and Elan will share all development costs and eventual profits if the drug is approved to go on the market.
 The drug's developers have high hopes for the proposed medicine, a monoclonal antibody designed to block the migration of white blood cells into tissue. They said the drug has demonstrated promising results in treatment of MS, Crohn's disease and ulcerative colitis and could have other uses.
The companies said the drug could be used alone or in conjunction with Avonex, a treatment designed to slow the progression of disability in relapsing MS. Sales of Avonex totalled $621 million last year, accounting for most of the company's $794.4 million in annual revenue. About 83,000 patients globally were taking the drug as of the end of 1999.
Shares of the Cambridge, Mass.-based Biogen (BGEN: Research, Estimates) closed up 2-11/16 to 70-1/4 Wednesday.
Shares of Elan (ELN: Research, Estimates) edged up 1/16 to 54 in New York on Wednesday. The stock is trading near a 52-week high of 55-3/8.
Elan, which specializes in neurological disease treatments, announced a pact earlier this year with Madison, N.J. based American Home Products Corp. to develop a potential vaccine for Alzheimer's disease. 
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