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Biotech / Medical : Elan Corporation, plc (ELN)

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To: Icebrg who wrote (1380)	12/22/2001 2:39:40 AM
From: Icebrg	Read Replies (1) of 10345

Elan in alliance to develop sleeping pill By Geoff Dyer in London (Financial Times) Published: December 20 2001 19:42 \| Last Updated: December 20 2001 19:47 Elan, the Irish pharmaceuticals group, has formed an alliance with American Home Products which gives it the right to market and develop a treatment for sleep disorders in the US. The deal is part of the group's aggressive licensing and acquisition strategy which is designed to more than double sales over the next four years. AHP, the US pharmaceuticals group, will continue to promote Sonata to psychiatrists in the US, and Elan will be responsible for the rest of the sales and distribution and will develop new formulations of the drug. Shares in Elan, which have fallen in recent months, slipped a further 7½p to £30.15 on the news. Financial terms were not disclosed. Donal Geaney, chairman of Elan, said the company's sales force would be able to at least double existing revenues of $85.4m this year, before taking into account new versions of the drug. The total market for the class of drugs was some $1bn a year. The deal would be neutral for earnings as any upside from selling the drug would be channelled into research and development. Elan's drug-delivery technology would be used to accelerate the onset of the effect and to let it last longer through the night, he said. The main patent on the drug expires in 2003. However, Mr Geaney said he expected it to be extended until 2008 because of the long period of time it had taken US regulators to approve Sonata. The alliance is part of a growing trend for large drugs groups such as AHP to license or sell their lower-selling products to smaller groups with more focused sales forces. Companies such as Shire Pharmaceuticals and Elan have prospered in recent years in this emerging market known as speciality pharmaceuticals. news.ft.com

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