Citigroup maintains Elan at sell

Elan Corp. plc was maintained at sell by Citigroup analyst Andrew Swanson after Elan and Biogen Idec announced that the U.S. Food and Drug Administration will give Tysabri sBLA a priority review. Citigroup predicted a Tysabri launch in the second quarter of 2006 with peak sales of $1.5 billion, assuming the drug takes an 11% share of the current multiple sclerosis market and is also used for Crohn's disease. Swanson upped the 2006 earnings-per-share estimate to $0.44 from $0.42 but said that Citigroup cannot support Elan valuation at current levels. Shares of the Dublin, Ireland-based biotechnology company were up 42 cents, or 4.08%, at $10.72 on volume of 15,994,700 shares versus the three-month running average of 5,650,800 shares.

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