Elan announced today it is raising the wholesale acquisition cost of its multiple sclerosis drug Tysabri to $2,184.62 per vial, up 21 per cent on its original launch price.
"Tysabri will be available upon the completion of key activities related to the risk management plan. . . . As such, Elan and Biogen Idec anticipate Tysabri will be available in July," Elan said.
US health officials cleared the way on Monday for Tysabri, developed with Biogen Idec, to return to the market with restrictions, following its withdrawal last year when it was linked to a rare but potentially fatal brain disease.
"Based on a treatment plan of once every four weeks (13 times per year), we calculate the cost per annum to be $28,400," said Goodbody Stockbrokers' analyst Ian Hunter.
"This is $4,900 (21 per cent) ahead of the $23,500 we have built into our numbers. This increase gives us further comfort in our numbers and we believe will act as a support to the share price at current levels."
Davy Stockbrokers' analyst Jack Gorman said the new price represented a 20.9 per cent increase on the launch price in November 2004.
"The increase takes account of general price inflation in competing MS therapies in the intervening period, and also the additional costs associated with the risk-map," he said.