Elan has been granted approval by the US Food and Drug Administration to market Avinza, its once-daily treatment for chronic and moderate to severe pain.
Elan has lost over two thirds of its value this year after its accounts were called into question and after it stopped trials on a drug for Alzheimer's disease due to adverse effects.
The Athlone-based company said it expected to launch Avinza in the second quarter of this year. Elan has licensed the US and Canadian marketing rights for the product to Ligand Pharmaceuticals in 1998, but retains the rights for the rest of the world.
Analysts said the new drug would provide only a modest income in 2002 but its approval would provide a badly-needed boost to Elan's product sales base.
The news failed to lift Elan's shares, which were hammered yesterday after Moody's Investors Service downgraded the company's debt ratings to junk status on the back of weak operating cash flow from core product sales.
Elan shares closed up 25 cent at €15.90 in Dublin.
