The pharmaceuticals group, Elan, is to initiate, with its partner Wyeth, phase three trials on what could turn out to be a disease modifying treatment for mild to moderate Alzheimer's Disease.
Elan's shares were trading up nearly 13% in Dublin after the news.
Bapineuzumab, will begin Phase III trials in treating patients with mild to moderate Alzheimer's in the second half of this year, once clinical trial design is finalised with regulatory agencies, the firms said this morning.
The decision to push ahead with Phase III tests was reached taking into account the seriousness of the disease and a review of interim data from Phase II studies, they said.
'No conclusion about the Phase II study can be drawn until the study is completed and the final data are analysed and released in 2008,' they added.
Despite the companies' caution, industry analysts said the news was highly encouraging and suggested Elan and Wyeth had a promising new technology to tackle one of the world's most intractable diseases.
'This is a very positive development for both Elan and Wyeth, given that the acceleration of the drug into a Phase III study was only going to be considered if the interim data showed a significant improvement in patient progress,' Goodbody stockbrokers said in a research note.
According to Elan, around 24 million people have Alzheimer's worldwide.
Elan shares closed up €2.17 - almost 19% - to €13.87 in Dublin.
