Elan shares jump on new trial for Alzheimer's drug

LONDON, May 21 (Reuters) Ireland's Elan Corp and US partner Wyeth plan to start final-stage clinical tests of a new antibody drug to fight Alzheimer's disease, boosting shares in Elan and offering new hope to patients.

Bapineuzumab, also known as AAB-001, 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 today.

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, Elan and Wyeth added.

''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,'' Ian Hunter of Goodbody stockbrokers said in a note.

Shares in Elan were 11.6 percent higher at a 10-month high of 13.06 euros by 0840 GMT (1510 IST).

REUTERS SKB KN1446