Biogen's drug is star of show
By Val Brickates Kennedy, CBS.MarketWatch.com
Last Update: 7:27 PM ET Jan. 14, 2005
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BOSTON (CBS.MW) -- Although just approved in November, Biogen Idec's new multiple-sclerosis drug, Tysabri, was the runaway hit of J.P. Morgan's annual health-care conference this week, with industry experts stoking expectations that the drug could become a blockbuster.
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"We think it's one of the most important product launches in the history of biotechnology," said J.P. Morgan analyst Ron Renaud.
Tysabri, OK'd by U.S. regulators in late November, has been touted as a major breakthrough in the treatment of MS as it reportedly doesn't cause the flu-like symptoms associated with other MS drugs. The drug was co-developed with Irish drugmaker Elan Pharmaceuticals (ELN: news, chart, profile).
As a result, Biogen (BIIB: news, chart, profile) said that it believes Tysabri will be able to significantly expand the market for MS drugs by bringing in patients unable to tolerate other MS drugs. The company said it also foresees patients who are taking those medications migrating to Tysabri.
"We think this will be a market-changing product," said Renaud.
Biogen's chief executive officer, James Mullen, said the company foresees the worldwide market for MS drugs growing from about $4 billion to $6 billion, with Tysabri taking the majority stake.
"I think that people are seeing this as a potentially huge drug," said Mullen at the conference.
"We believe that a lot of patients will demand to be switched," said Elan's chief of research and development, Lars Eckman.
Eckman added that at this point, healthcare insurers seem to have little reservation covering the drug, which can cost up to $23,000 a year. He said this is because MS patients who suffer relapses of the disease run the risk of becoming permanently disabled or even dying.
"There's been no push back on reimbursement," said Eckman. "This is because it's effective."
Biogen and Elan are also pursuing Tysabri approval for the treatment of other autoimmune diseases.
The companies hope to file for U.S. regulatory approval for Tysabri to treat the debilitating intestinal disorder Crohn's disease in mid-2005. European approval for that indication is anticipated by the end of 2005.
Biogen and Elan are also running Phase III clinical trials for Tysabri for the treatment of the painful disorder rheumatoid arthritis. Results from those studies are expected later this year.
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