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

To: Charles Broderick who wrote (824)	1/13/2000 10:20:00 AM
From: William Partmann	Read Replies (1) \| Respond to of 10345

From II:Elan and ISIS announce Collaboration on Hepatitis-C Drug Analyst: Bob Hirschfeld (1/13/00) On January 6, Elan (NYSE:ELN - news) and ISIS Pharmaceuticals (NASDAQ:ISIP - news) announced an agreement to develop an antisense drug to treat patients with Hepatitis-C virus using Elan?s MEDIPAD delivery system. Antisense drugs work at the genetic level to interrupt the process by which disease-causing proteins are produced. The compound will be developed and potentially commercialized by a new subsidiary of ISIS. Under terms of the transaction, Elan will buy $7.5 million of ISIS common stock, with rights to acquire $7.5 million more in stock if specific specific milestones have been achieved. Hepatitis-C is an inflammation of the liver that affects about 1.8% of the US population. Current treatments are effective only in about 40% of cases. Gruntal analyst Jeffrey Kraws wrote that the agreement ?attests to the strength of Elan?s drug delivery technology.? The analyst added, ?We believe Elan is likely to enter other agreements with additional biotechnology and pharmaceutical companies,? and noted Elan?s recent collaboration with Merck (NYSE:MRK - news) for its Nanocrystal technology, designed to improve delivery of water-soluble drugs. Other drug companies that Elan works with include Johnson & Johnson (NYSE:JNJ - news) , Warner-Lambert (NYSE:WLA - news) , and Bristol-Myers Squibb (NYSE:BMY - news) . Kraws sees the stock rising to $43 over the intermediate term. On January 7, Warburg Dillon read analyst Andrew Forman, in his ?Year 2000 Outlook for Specialty Pharmaceuticals,? wrote, ?In our view Elan has a great opportunity to rebuild credibility with potential positive news from any of ten or more products on the market or in the advancing pipeline.? Given numerous deals for its drug delivery platforms, its strong drug pipeline, and low current valuation, we maintain our Buy on Elan shares. Updated January 13, 2000 with ELN trading at $27.50 Recommended 12/10/99 at $27.06