Elan's stock rose 19 cents to €3.50, or $4.52, on the Dublin exchange.

The drug, Tysabri, which is intended for immune system disorders like multiple sclerosis and Crohn's disease, was suspended after Elan and its partner Biogen Idec discovered that the drug caused a deadly brain disease in at least three patients, two of whom died. The companies are examining the remaining 3,000 patients, many of whom were also taking Tysabri in combination with other therapies.

The U.S. Food and Drug Administration has yet to signal whether it will issue a new license for Tysabri.

But many observers feel that "the drug is too good not to come back," said David Marshall, an analyst at NCB Stockbrokers in Dublin.

"It slows the progression of the disability more than any of the other drugs" used to treat multiple sclerosis, and the FDA has been inundated with letters from patients asking for it to be reapproved, he said.

Even without the anticipated billion-dollar earnings from Tysabri, steady sales of Elan's more traditional products - like powerful pain relievers and antibiotics - may help the company end its loss-making streak this year, said its chief financial officer, Shane Cooke.

"We should be able to go into the first quarter of '06 at break-even at least," he said after announcing a first-quarter loss of $116 million, an 86 percent rise from the year earlier.

Revenue fell by nearly a third, to $102.7 million, he said.

http://www.iht.com/articles/2005/04/28/business/elan.php