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

To: Paul Senior who wrote (613)	11/5/1999 8:27:00 PM
From: Return to Sender	Respond to of 10345

Lets revisit the 3rd quarter numbers Elan Reports Record Third Quarter Revenues and Earnings Revenues Increased 48% to $253 Million in the Third Quarter Diluted Earnings Per Share Increased 28% in the Third Quarter DUBLIN, Ireland, Oct. 26 /PRNewswire/ -- Elan Corporation, plc (NYSE: ELN - news; ''Elan'') announced third quarter revenues of $253.4 million, up 48% and diluted earnings per share of 32 cents, up 28%. Nine month revenues were up 56% to $721.0 million and diluted earnings per share were up 21% at 87 cents for the nine months ended September 30, 1999. ''The results for the third quarter set a new record for Elan in terms of revenues and net income,'' said Donal J. Geaney, chairman and chief executive officer. ''I anticipate a strong finish to fiscal 1999 and am pleased to report further expansion of our sales and marketing infrastructure in the United States and Europe. We have made significant progress this year in all areas of our business and I am particularly proud of the progress we have made in our research into Alzheimer's disease where we hope to initiate Phase I safety studies in Alzheimer's patients this quarter.'' The increase in revenues for the third quarter was primarily due to an 84% increase in product sales and a 77% increase in research revenues. Revenues from royalties and fees increased by 4% in the third quarter. Product sales reflected strong performances in the United States of a number of products including Zanaflex® and Skelaxin®, with satisfactory performances by Verelan®, Naprelan® and Permax®. Performance in Europe and other markets was also satisfactory. The diagnostic businesses had a further strong quarter recording a 92% increase in revenues compared to the third quarter of 1998. Research revenue for the third quarter was $43.6 million, of which $39 million was received under research arrangements with Axogen Limited and Neuralab Limited. The increase in research revenues was more than offset by the increase in research and development expenditure to $54.8 million, which was an increase of 82%. The increase was primarily due to increased clinical trial expenditure. The gross margin on product sales increased to 60% compared with 53% in the third quarter of 1998, principally due to the shift towards directly marketed products. Selling, general and administrative expenses increased 51% 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 27% in the third quarter primarily reflecting the increased revenue in the quarter. Net income after tax increased 36% to $90.4 million in the third quarter of 1999 resulting in an increase in diluted earnings per share in that quarter of 28%. 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 arising from the acquisition of Neurex Corporation in August 1998 and the exercise of the 1993 series warrants which expired in August 1998. As separately announced by Vanguard Medica Group plc, our licensor for the anti-migrane compound frovatriptan, the U.S. Food and Drug Administration has requested further non-clinical data to support the New Drug Application for frovatriptan. The estimated date for submission of the additional data is the fourth quarter of 2000. Vanguard and Elan plan to use the additional time to further profile the clinical advantage of frovatriptan in the highly competitive anti-migrane market. Elan anticipates that the impact of the delayed launch of frovatriptan will be to reduce expected earnings per share for fiscal 2000 by approximately four cents. Following receipt of shareholder approval, Elan has initiated a share repurchase programme primarily to offset shares issuable pursuant to employee share option programmes. To date, Elan has repurchased 361,500 American Depositary Shares (''ADSs'') in the open market. Elan may repurchase additional ADSs in the open market from time to time, subject to market conditions. Such repurchased shares will be held in treasury. Elan is a leading worldwide specialty pharmaceutical company headquartered in Ireland, with its principal research, development, manufacturing and marketing facilities located in Ireland, the United States and Israel. Elan shares trade on the New York, London and Dublin Stock Exchanges. The statements in this press release may include forward-looking statements by Elan and actual results could differ materially from those described as a result of factors, including but not limited to, the following. There can be no assurance that (a) projected revenues or profits will be achieved in a timely manner or at all or (b) any product, including frovatriptan, will be successfully developed, regulatory approvals will be granted, patient and physician acceptance of those products will be achieved, final results of human clinical trials will be consistent with any interim results, or results will be supportive of regulatory approvals required to market products. Other risks and uncertainties are detailed from time to time in periodic reports, including Elan's reports on Form 6-K and Form 20-F for the year ended December 31, 1998, filed with the Securities and Exchange Commission. biz.yahoo.com This is just my opinion but my technical analysis says ELN bottomed today! Please do your own due diligence.