Drug Stocks Slide; Biogen Falls On PML Update

By Val Brickates Kennedy

Drug stocks slid into the red early Monday as shares of Biogen Idec fell on news that another case of brain disease PML had been discovered in a user of its multiple-sclerosis drug Tysabri.

The NYSE Arca Pharmaceutical Index (DRG) slipped 0.5% to 260.05, and the NYSE Arca Biotechnology Index (BTK) dipped 1% to 694.02.

Shares of Biogen (BIIB) were off 6% to $46.99.

On Friday, Biogen reported its tenth case of PML since Tysabri was put back on the market in 2006. It is also the fourth such case reported since mid-May. One person has died of the disorder since the relaunch.

In 2005, the drug was taken off the market for several months after it was linked to PML, a potentially fatal brain disease, in a handful of Tysabri users.

Tysabri is co-marketed with Elan Corp. (ELN). Shares of Elan were down 4% to $7.09.

Shares of Sanofi-Aventis (SNY) rose 3% to $28.76 after falling about 6% Friday.

On Monday, Sanofi once again defended the safety of its long-acting insulin product Lantus, asserting that clinical trials have not associated the product with cancer. The European medical journal Diabetologia over the weekend reportedly questioned whether there might be a link, and called for more medical research into the matter.

Shares of Novo Nordisk A/S (NVO) added 1% to $53.33. Novo Nordisk, which markets a similar product, said Sunday that none of its long-acting insulin products has ever been linked to cancer.

-By Val Brickates Kennedy, 415-439-6400; [e-mail]