Elan keeps door open on biologics

ELAN MAY yet invest in a biologics operation in Ireland despite its decision to step back from direct control of its Alzheimer…

ELAN MAY yet invest in a biologics operation in Ireland despite its decision to step back from direct control of its Alzheimer’s immunotherapy programme.

The decision to cede control of the bapineuzumab, the drug in development to treat Alzheimer’s, to US healthcare giant Johnson Johnson was initially seen as closing the door on plans for a biologics operation in the Republic, a project Elan had been actively pursuing for some time. The company had got as far as identifying Dublin as the likely site for the operation which had been earmarked largely for the manufacture of bapineuzumab on a commercial basis should it come through the current phase III trials successfully.

However, it deferred a final decision pending the outcome of the strategic review it began last January. The outcome of that process, which sees it retain a financial interest in the programme it had undertaken with Wyeth but no direct responsibility for development or commercialisation, was seen as ending its interest in establishing such a plant.

However, in an interview with The Irish Times, Elan chief executive Kelly Martin said that the company was still likely to need access to a biologics expertise.

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“You go back to our portfolio and a big tilting of our research and clinical developments is large molecules and then antibodies. We need to have some biological expertise; we need to have access to biological capability whether it is completely ours or shared or co-sourced or whatever,” he said.

He said that the company will address shortly what it should be doing in biologics in Ireland.

“I doubt we’re going to build [a plant] in the near term, but I think the biologicals part of business is going to grow . . . So we need to have people who understand how to make the product . . . you cannot rely completely on a partner or outsource it.”

Elan will announce results for its second quarter tomorrow. The company is expected to report improved growth in the sale of its key drug, the multiple sclerosis therapy Tysabri.

Its partner in the Tysabri programme, Biogen Idec, last week reported its second quarter figures which featured a 27 per cent surge in sales of Tysabri.

Dominic Coyle

Dominic Coyle

Dominic Coyle is Deputy Business Editor of The Irish Times