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The claims concern Elan's representations and discussions about the results of a clinical trial of a drug, Bapineuzumab (AAB-001) for the treatment of Alzheimer's disease that Elan was developing jointly with Wyeth Corporation. The results were first announced in a joint June 17, 2008 Elan-Wyeth press release titled "Elan and Wyeth announce encouraging top-line results from Phase 2 clinical trial of Bapineuzumab for Alzheimer's disease." Among other things, the June 17 press release stated that "statistically significant and clinically meaningful benefits were seen in patients who did not carry a gene that increases the risk of having Alzheimer's disease." These patients, the press release stated, comprise 40-70% of the Alzheimer's disease population.
On the day the June 17 press release was issued, the market price of Elan stock rose almost $3 per share, from a closing price of $27.11 the previous day to a closing price of $30 per share on June 17, on extraordinary trading volume of almost 30.5 million shares. The market price of Elan stock continued to rise on expectation that detailed results of the trial, which were anticipated to be announced at a medical conference on July 29, would provide further favorable information. The stock reached a high of $37.45 on July 10, 2008.
When the detailed results of the study were disclosed on July 29, 2008, it was revealed that the claims of "statistically significant and clinically meaningful benefits" were based on 48 patients in four dose groups who were treated with the drug who did not carry the gene. Additionally, some patients had results that were worse than placebo with respect to some of the measures of cognition and function. Moreover, efficacy did not increase with the dose. This made the results appear random, rather than drug-related.
When these facts were revealed on July 29, 2008, the market price of Elan's stock fell from a closing price of $33.75 per share on July 29, to a closing price of $20.99 on July 30, 2008, a decline of $12.78, or about 38%, on volume of almost 53 million shares.
If you purchased Elan stock between June 17, 2008 and July 29, 2008, and would like to discuss this investigation or learn more about these possible claims, you may e-mail or call Brodsky & Smith, who will, without obligation or cost to you, attempt to answer your questions.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Brodsky & Smith, LLC
Brodsky & Smith, LLC Jason Brodsky (610) 667-6200 jbrodsky@brodsky-smith.com Two Bala Plaza, Suite 602 Bala Cynwyd, PA 19004
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