http://www.nytimes.com/2002/02/23/business/23ELAN.html

February 23, 2002

Swelling Linked to Experimental Drug

By BLOOMBERG NEWS

UBLIN, Feb. 22 (Bloomberg News) — The Elan Corporation's experimental treatment for Alzheimer's disease has been linked to more cases of inflammation of the central nervous system, a side effect that caused the company to suspend a study last month.

Last month, Elan, Ireland's biggest drug maker, and its partner, the American Home Products Corporation (news/quote), said they had halted the test after four patients developed the inflammation, which resembles encephalitis.

The Washington Post (news/quote) reported on Thursday that the condition might have afflicted a total of 12 volunteers out of about 360 in the research.

"The only thing I can say is that there are some additional cases," said Jonathan Birt, a spokesman for Elan. He declined to give further numbers or to predict the future of the new drug.

All the findings will be reviewed by the study's independent monitoring board and sent to regulators, he said.

Investors had considered the medicine, known as AN-1792, one of the most promising in development at Elan.

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