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Elan shares send ISEQ lower at close

Tuesday, August 07 17:35:52

The main Dublin shares index turned sharply negative despite strong gains for CRH amid rumours it is poised to make a big acquisition and as Elan shares plunged.

The ISEQ was down 36.91 points to 3,171.99.

German industrial orders fell more than expected in June as domestic and euro zone demand faltered, indicating the single currency bloc's debt crisis is taking its toll on Europe's largest economy, spooking investors across Europe's markets.

At home, shares in CRH rose 21c to E15.65. It has again been linked (by The Economic Times) to the cement assets of Jaiprakash Associates in the Indian provinces of Gujarat and Andhra Pradesh. The article suggests that the group will acquire a 51pc stake in the Gujarat cement business for E600m. Jaiprakash last year spun out part of its cement business into a company called Jaypee Cement which has four cement plants with a total capacity of 9.8mt. These facilities are located in Gujarat and Andhra Pradesh in the west and south of the country. The latest article indicates that CRH is close to acquiring a 51pc stake in the Gujarat units of Jaypee which consists of two plants with a combined capacity of 4.8mt. Under the deal, CRH will have an option to increase its stake to 75pc at a pre-determined price over the next two years. The transaction is close to being finalised, according to the story. The group is also rumoured to be interested in acquiring a stake in the 5mt cement unit in Andhra Pradesh, although this unit has apparently attracted more bidders.

Elan's stocks plunged 81c to E8.43 after news that all Phase 3 trials on Bapineuzumab are to be discontinued as co-primary endpoints on the non carrier trial were not met. Announcements from PFE, J and J and Elan last night confirmed that the Bapineuzumab non-carrier trial (Study 301) did not meet its co-primary endpoints. It has thus been decided by the joint steering committee that all other related studies on the IV formulation would be discontinued, including all follow-on extension studies. No new safety concerns were identified in Study 301. The most commonly observed serious adverse events, with an incidence of at least 1pc in the combined dosage groups, were pneumonia, ARIA-E (amyloid-related imaging abnormalities-edema), syncope, hip fracture and convulsion.