BIOGEN IDEC yesterday reported profit higher than analysts expected, helped by a 27 per cent sales surge for its fastest-growing drug, Tysabri, which it has developed in partnership with Irish biotech group Elan. Second-quarter net income dropped 30 per cent to $144.9 million (€102.7 million), or 49 US cents a share, from $208 million, or 70 cents, a year earlier, the company said in a statement.

Earnings excluding research expenses from a licensing deal with Acorda Therapeutics – which will also bring licensing revenue to Elan – beat analysts’ projections.

Revenue rose 10 per cent to $1.09 billion as more patients were treated with the MS medication Tysabri, which returned to the market in July 2006 after a 17-month suspension because of its link to a viral brain disease called progressive multifocal leukoencephalopathy (PML).

“It is clear that Tysabri’s growth continues despite all the negative attention the drug receives,” said Eric Schmidt, an analyst with Cowen Co in New York, in a note to clients.“Tysabri’s strong performance was driven by a significant” increase in new patients taking the drug.

Biogen’s share of sales of Tysabri increased to $187.6 million. Second-quarter earnings reflected a 65 per cent increase in research and development expenses, to $416.4 million, boosted by a $110 million up-front payment to Acorda.

Biogen is racing Merck KGaA and Novartis AG to market the first pill for MS, a debilitating nervous-system disease currently managed by injected drugs that generate $6 billion a year worldwide. Fampridine SR, developed by Elan and designed to improve walking ability in patients with MS, may win US approval this year. – (Bloomberg)