Eye On Stocks For Thursday, March 9, 2006 Peter Kang, 03.08.06, 6:30 PM ET
Most Popular Videos
SportsMoney: Catching On Bell Tolls For Sprint Nextel Apple Sweetens Product Line Getting Enron The Sun Still Rises
Most Popular Stories
Top Earning Actors/Actresses I'd Like Not To Thank The Academy Most Dangerous Destinations 2006 Rules Of The Oscar Game The Economics Of Prostitution
Shares of Biogen Idec and Elan are likely to see a huge increase in trading volume tomorrow after the companies received the blessing of a U.S. Food and Drug Administration advisory committee for multiple sclerosis drug Tysabri. Both stocks were halted during the two-day FDA advisory meeting. The 12-member panel voted unanimously in favor of use of Tysabri as a second-line treatment and 7 to 5 as a first-line treatment. The halt on Elan trading was lifted in the last half-hour of today's session, with the stock ending up 24%. Shares of Biogen Idec rose 9% in after-hours trading.
The majority panel recommendation for Tysabri as a first-line treatment prompted Deutsche Bank to upgrade Biogen Idec (nasdaq: BIIB - news - people ) to "buy" from "neutral" as the firm expects the drug will receive favorable labeling from the FDA. "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." Deutsche Bank raised the price target on Biogen Idec to $63 from $38. (See: " The Tysabri Game Plan.")