Biogen, Elan Shares Fall on Test Failure

Biogen Inc. said the Antegren medicine it’s developing with Ireland’s Elan Corp. failed to significantly reduce symptoms of an intestinal disorder in a study.

Biogen, which agreed to merge with Idec Pharmaceuticals Corp. last month, has been trying to get more drugs to market to lift sales and profit.

Investors said the failure may make Cambridge, Mass.-based Biogen less attractive to Idec shareholders, who have yet to approve a stock swap now worth about $5.2 billion -- more than $1 billion less than when the deal was announced.

Biogen Chief Financial Officer Peter Kellogg said that the merger would proceed and that the setback would not affect Biogen’s forecast for 2003 profit of $1.72 to $1.86 a share. Idec executives couldn’t be reached for comment.

Shares of Biogen fell $2.48, or 6%, to $38.70 on Nasdaq. San Diego-based Idec fell $1.94, or 5.4%, to $34.11, also on Nasdaq. Elan’s shares fell $1.99, or 30.8%, to $4.47 on the NYSE.