Elan ( ELN ) Biogen ( BIIB ) Tysabri Update - MS Drug 8/26/08

Last night, Biogen ( BIIB ) came out with an update regard the multiple sclerosis drug, Tysabri, which they are co developing with Elan ( ELN ) corporation.

The FDA is working with the companies to amend the product labeling to inform patients of the two cases. A company spokeswoman said the updated label will be based on the two cases, which the company had confirmed in late July.

The patients had been taking the drug, as a sole treatment for multiple sclerosis, for more than a year, according to an alert the FDA issued to health-care professionals that was posted on the agency's Web site Monday.

This is great news for both companies, I expect them to move high in the coming weeks and months. If the patients in Europe that has this brain disorder die however; it could have negative implications on the these two stocks.