Merrill Lynch maintains Elan at sell

Elan Pharmaceuticals, Inc. was retained at a sell rating by Merrill Lynch analyst Erica Whittaker, who also revised down its loss per share estimates after the company reduced operating expenses more than expected. Merrill Lynch said it believes Tysabri will not be approved for Crohn's disease due to the poor risk profile and its use for multiple sclerosis is not likely until the first quarter of 2007. Elan may struggle to meet its $2 billion debt obligations due 2008 and 2011, and Tysabri sales must reach $1 billion before the company can become profitable and repay debt, Merrill Lynch said. Shares of the Dublin, Ireland-based biotechnology company were down $0.05, or 0.62%, at $7.97 on volume of 3,538,500 shares versus the three-month running average of 6,350,460 shares.

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