Good News for Tysabri

Medical advisers to the Food and Drug Administration say the multiple sclerosis drug Tysabri can also be used to treat Crohn's disease, a chronic gastrointestinal ailment.

The recommendation, issued late Tuesday afternoon, provides a boost to Biogen Idec(BIIB Quote) and Elan(ELN Quote), whose Crohn's disease application was recently rejected by the European Union.

The FDA advisers' vote, which came well after the market had closed, sent shares of Elan up 82 cents, or 4.4%, in after-hours trading. In regular trading, Elan's stock closed at $18.73, up 70 cents, or 3.9%, on heavier-than-average volume. Biogen Idec's stock rose $1.11, or 2%, to $56.64 in regular trading on heavy volume. ...