ELAN - ELN - Tysabri Drug goes wrong!

Tonight Elan ( ELN ) is down another 35% as the company released an SEC filing stating that two patients taking Tysabri were infected with the rare PML brain disorder.

These two incidents happened today and yesterday....both patients are in Europe....one still hospitalized, the other is at home and clinically stable.

Elan was $32 just days ago and now has fallen to $11.50 afterhours tonight.

ELN has strong support in the $7 range so if it got there it might be interesting. This is fresh news so tomorrow I will look to see how the market takes this news.

Watching my level 2 trading....i'm seeing big blocks coming in for sale: 500,000 share blocks coming in hitting the bidders. Not a good sign!!

ELN could trade between 80-120 million shares tomorrow I would guess. Who knows maybe more! Keep this stock on your watchlists.

Please note: Biogen Idec ( BIIB ) is also a partner for this drug

http://www.sec.gov/Archives/edgar/data/737572/000095016208000315/elan6k_073108.htm