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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: Lance Bredvold who wrote (425)	7/27/1999 8:40:00 AM
From: William Partmann	Respond to of 10345

July 27 (Reuters) - Irish pharmaceuticals group Elan Corp Plc (quote from Yahoo! UK & Ireland: ELA.L)(NYSE:ELN - news) said on Tuesday it had signed a technology transfer and license agreement with U.S. group Merck & Co on Elan's NanoCrystal technology. Elan said it would receive up to $30 million in pre-commercialisation payments, milestone fees and royalties and sales of products formulated using its technology. The technology improves the delivery of poorly water-soluble medicines by transforming the drug compounds into nanometer-sized particles that can be used in traditional forms of dosage, including oral, injectable, and aerosol.

To: Lance Bredvold who wrote (425)	7/27/1999 8:43:00 AM
From: William Partmann	Read Replies (2) \| Respond to of 10345

Elan Reports Record Second Quarter and Six Month Revenues and Earnings Revenues Increased 50% to $234 Million in the Second Quarter; Pharmaceutical Revenues Increased 71% in the Second Quarter Diluted Earnings Per Share Increased 21% in the Second Quarter. DUBLIN, Ireland, July 27 /PRNewswire/ -- Elan Corporation, plc (NYSE: ELN - news; ''Elan'') announced second quarter revenues of $234.4 million, up 50% and diluted earnings per share of 29 cents, up 21%. Six month revenues were up 61% to $467.6 million and diluted earnings per share were up 17% to 55 cents in the six months ended June 30, 1999. The increase in revenues for the second quarter was primarily due to a 71% increase in product sales and a doubling of research revenue. Revenue from royalties and fees increased by 4% in the second quarter. Product sales reflected strong performances in the United States and European markets of a number of important products including Zanaflex®, Skelaxin®, and Mysoline®. Permax® recorded an increase in new prescriptions and Naprelan® new prescriptions stabilized in the quarter. The diagnostic business had a strong second quarter recording a 92% increase in revenues. Research revenue for the second quarter was $44.3 million, of which $30.3 million was received under research arrangements with Axogen Limited and Neuralab Limited. Costs incurred in respect of these research arrangements in the second quarter were $26.6 million prior to amortization of the warrant subscription receivable. The increase in research revenues was more than offset by the increase in research and development expenditure to $56.8 million, up 82%. The increase was primarily due to increased clinical trial expenditure. The gross margin on product sales increased to 64% compared with 54% in the second quarter of 1998, principally due to a shift towards directly marketed products. Selling, general and administrative expenses increased 79% reflecting the inclusion of full quarter costs for acquisitions made in 1998 and the expansion of the marketing and sales infrastructure in the United States and Europe. Operating income increased 25% in the second quarter primarily reflecting increased revenue in the quarter. Net income increased 34% to $80.1 million in the second quarter of 1999 resulting in an increase in diluted earnings per share in the second quarter of 21%. The increase in diluted earnings per share reflects the higher net income for the quarter offset, in part, by an increase in the number of ordinary shares in issue from the acquisition of Neurex Corporation and the exercise of the 1993 series warrants which expired in August 1998. ''These second quarter results represent a quarter of solid achievement with the continuing transition of Elan's business to a company deriving its revenues primarily from product sales,'' said Donal J. Geaney, chairman and chief executive officer. ''Additionally, we reported significant progress in our research programmes and continue to establish marketing infrastructure in North America and Europe. We have completed the consolidation of the acquisitions that we made in 1998 and the results for the quarter show that we have worked through the dilution caused by these acquisitions. Our near term product pipeline is strong and I anticipate up to five product launches by Elan Pharmaceuticals in the period through December 31, 2000.'' Mr. Geaney added ''the recent publication in Nature of data with respect to a potential treatment for Alzheimer's disease is an exciting development for Elan and represents what we believe to be a major scientific breakthrough. We anticipate submitting an investigational new drug application in the second half of the year to commence initial safety studies in humans. We announced yesterday that we will develop Antegren® for the chronic treatment of multiple sclerosis. With respect to our novel anti-epilepsy compound, Zonegran(TM), the U.S. Food and Drug Administration has reaffirmed that Zonegran is approvable and has requested analyses and information on the previously completed clinical studies and refinement of the draft labelling before final approval can be obtained.''