Elan "neutral," target price reduced

07/30/07 - J.P. Morgan Securities

LONDON, July 30 (newratings.com) - Analyst Annie J Cheng of JP Morgan maintains her "neutral" rating on Elan Corp Plc (DRX). The target price has been reduced from €17 to €16.

In a research note published this morning, the analyst mentions that the company intends to disclose the Phase II data on bapineuzumab at a scientific meeting in mid-2008. The end-market sales estimate for Tysabri for 2012 has been reduced from $1,964 million to $1,875 million, in view of the exclusion of the drug in Crohn’s disease. The downward revision in the target price reflects the removal of revenues for the usage of the drug in Crohn’s disease, JP Morgan adds.