Deutsche Bank Securities upgraded shares of Biogen Idec to "buy" from "neutral" as the research firm anticipates better-than-expected labeling for multiple sclerosis drug Tysabri.
Earlier today, an independent advisory panel unanimously recommended Tysabri return to the market in some form. In addition, the 12-member committee voted 7-to-5 in favor of Tysabri as a first-line treatment.
The Food and Drug Administration is not obligated to follow the panel's vote but historically acts in concert.
"While we would expect Tysabri to be used predominantly as second-line treatment, the importance of opening up for first line use would allow physicians flexibility to use Tysabri in more difficult-to-treat cases earlier on and allow faster penetration into the non-responder market," wrote Jennifer Chao of Deutsche Bank, in a report sent to investors on Wednesday afternoon.
Chao raised the price target on Biogen Idec (nasdaq: BIIB
) to $63 from $38. She expects the FDA to approve Tysabri by late March and projects 2006 and 2007 sales of $125 million and $325 million, respectively.
Tysabri was pulled from the market by Elan (nyse: ELN
) and Biogen Idec in February 2005 after three patients developed a rare brain disorder known as progressive multifocal leukoencephalopathy, or PML. Two of the cases were fatal.
The analyst said a critical factor in determining the scope of potential Tysabri treatment will be the safety monitoring system planned by the companies.
"We continue to be watchful of a likely extensive 'risk minimizing system' for tracking safety and clinical events which could as a gating factor to treatment," the analyst said.So if possible do I take this drug?? It is quite the scare but on the same note I have taken my risks with the Novantrone and have heart damage a little bit from it. What in the hell do I do if this drug is an option for me??? On a side note here is a pic of my 4 kids not the greatest because it is on a floppy but once I get the actual pictures I will post more of them so they at least are decent pictures.