don barrett

Elan-Hype or Hope?

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I used the same title as I did last time and since then it looks more like hype. If you go back to my article you'll see I advised investing in Elan as it was just too early in the process. I think Elan will get this right it is too risky to buy into Elan now. Elan was just entering Phase II with b-Mab and as I said then it was met with mixed reviews at best. EZArnie or someone even told me I was using outdated data. EZ said b-mabs efficacy was already established and proven. A drug just entering Phase II always has a lot of unanswered questions and that's why they go to all the trouble of PhaseII,III,and IV. When I wrote the article I stated Elan may be a buy later but not at this time and price.
B-Mab and Elan were on the ropes yesterday and today Tysabri and Elan were in the news again. Patients using Tysarbi for MS were having some serious side effects and brain disease. Tysarbi was pulled off the market in 2005 and was returned to the market in 2006 with the understanding to the MS patients they would be using Tysarbi at their own risk. That decision will be decided by the FDA as Tysarbi will be pulled from the market again.
I would like to close with a little advice and a company's stock with more potential and less risk than Elan will will ever be. Buying a pharmaceutical always has some risks and a company such as Elan with one drug already pulled off the market and then to buy into the company due to a drug in Phase II is very risky.
My advice is to you is stick with company marketing something with proven results. I have recommended the fertilizer companies since last year and I'm still buying them myself. I bought some $50 calls on Monday for $6 and sold them for $9 today. A 50% profit in 4 days is pretty good in my book. Terra Resources just reported some fabulous results this week and gave similar guidance for the rest of 2008(The calls were onTRA).