Judge rejects case that Elan misled market

INVESTORS IN Elan have failed in a US court action alleging the company misled the market about prospects for its two key drugs.

The case relates to company announcements on its multiple sclerosis drug Tysabri and Bapineuzumab, an Alzheimer’s therapy currently in development with Johnson & Johnson and Pfizer dating as far back as 2006.

Having granted the plaintiffs additional time in June to amend their claims, US district judge Alvin Hellerstein has ruled that nothing in the amended claims changed his initial view that the plaintiffs “have adequately and plausibly alleged false and misleading statements” by Elan and other companies involved in the drugs’ development.

He dismissed the proceedings.

Elan general counsel John Moriarty jnr said the company was pleased with Judge Hellerstein’s rejection of plaintiff’s allegations of securities fraud levied against Elan, its chief executive Kelly Martin and board member Lars Ekman.

“Elan has said from the start that it at no time made any false or misleading statements to investors regarding its neuroscience,” Mr Moriarty said.

“Elan looks forward to putting this case behind us and focusing on the research and development of potential therapeutics for grievous neurodegenerative disorders,” he added.