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

To: biostruggle who wrote (1378)	12/20/2001 9:41:04 PM
From: biostruggle	Respond to of 10345

Ligand phase II Psoriasis Elan owns 18% biz.yahoo.com

To: biostruggle who wrote (1378)	12/22/2001 2:32:49 AM
From: Icebrg	Read Replies (1) \| Respond to of 10345

Elan, AHP Drug Venture Seen As "Dream Deal" By DEBRA MARKS Of DOW JONES NEWSWIRES DUBLIN -- The chairman and chief executive of Elan Corp. PLC (ELN) said Thursday that the company's new sleep disorder venture with American Home Products Corp. (AHP) is a dream deal, and analysts were similarly bullish. Speaking to Dow Jones Newswires, Donal Geaney said the link-up "clearly builds on our presence in key therapeutic areas and overlaps into our franchise of pain management." The drug Sonata, on which the venture is based, is effective both for insomnia and pain relief. The two pharmaceutical concerns Thursday unveiled a strategic alliance to develop and sell new drugs for sleep disorders. Financial terms weren't disclosed. Geaney said the deal won't impact Elan's earnings and the money raised from the deal will be reinvested in research and infrastructure. Under the terms of the alliance, AHP contributes the U.S. marketing rights to Sonata while Elan adds its proprietary drug delivery technologies to develop new formulations. Elan will also be responsible for the marketing, sales and distribution of Sonata in the U.S. AHP will continue to promote the original formulation of Sonata to psychiatrists in the U.S. and will retain all rights overseas. Geaney said Elan is considering two drug delivery systems for Sonata: its nano-crystal technology and controlled release technology, either in tablet or capsule form. "We haven't decided yet on the final presentation," he said. Sonata, the second-largest selling branded hypnotic in the U.S., generated revenue of $68.6 million in 2000 and is expected to generate revenue of approximately $85.4 million in 2001. Sleep disorder drugs globally have become a multi-billion-dollar industry, Geaney noted. According to the U.S. National Sleep Foundation, sleep disorders affect about 85 million people a year in the U.S. and the U.S. market for prescription sleep products is growing at a rate of 25% a year. The alliance also expects to benefit from an anticipated patent extension from the U.S. Food and Drug Administration for Sonata's existing formulation to 2008. "An interesting add-on is the prospect that Elan will create next generation Sonata products by utilizing its drug delivery technology base, (with) an expected patent extension from the FDA which will extend the original product life to 2008," said Jack Gorman, a pharmaceuticals analyst at Davy Stockbrokers in Dublin. "While acknowledging the absence of detail on financial terms, Elan is combining its sales and drug delivery strengths in a classic specialty pharma deal, which can add visibility on its neurology portfolio and can provide potential upside to our forecasts over 2002-03," he said. Gorman forecasts earnings per share of $1.91 in 2001 and $2.32 for 2002.