Athlone reaction: Drug firm is a major employer and 'is very important industry in this town', writes Liam Horan in Athlone.

There were growing fears in Athlone last night that over 400 jobs are under threat in the local Elan plant, after the corporation's shares tumbled by almost 70 per cent yesterday.

The news of the dramatic share price loss has cast "a dark shadow" over Athlone, according to Mayor Cllr Austin Berry (Ind.)

"It would be a tragedy if anything were to happen. Elan came through a tough time in 2002, and it is a very important industry in this town," said Cllr Berry.

"All we can do now is wait and see, and hope that things improve in the next few days. It would be a disaster if anything were to happen to those jobs, particularly in light of all the fine research work done there."

Tysabri is not manufactured in Athlone, but it was to the forefront of the company's revival after the traumatic downturn of 2002.

Staff at the plant were briefed yesterday on developments.

The share collapses comes just as Elan is expanding its Athlone plant, with up to 120 new jobs set to be created in a new building at the plant at Monksland on the west side of the town.

Local TD Denis Naughten (FG) said the news was "a huge blow to the town of Athlone and its hinterland."

He said: "The new MS drug Tysabri has been the driving force behind the revitalisation of Elan's fortunes over the last period of time and it was hoped that this would see a further expansion of the Monksland facility, along with increased employment.

"It is critical that we all act with a cool head, as the stock exchange is always a very volatile indicator."

Mr Naughten called on the Government to ensure that the proposed National Institute of Bioprocessing Research and Training is now located in Athlone.

It is thought this plant is destined for Dublin, despite earlier speculation that it was earmarked for Athlone.