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Biotech / Medical : T/FIF, a New Plateau -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (942)	2/6/2002 4:54:12 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 2243

Wednesday February 6, 4:48 pm Eastern Time TEXT-S&P may cut Elan Corp Plc ratings (UPDATE: Press release provided by Standard & Poor's) NEW YORK, Feb 6 - Standard & Poor's today placed all of its ratings on Elan Corp. PLC (NYSE:ELN - news) on CreditWatch with negative implications (see list below). The actions were taken following Elan's announcement of higher-than-expected R&D and marketing expenditures, and the possibility of slower-than-expected product sales growth. The company also announced that it plans to pursue further product acquisitions. Elan continues to maintain a significant level of financial flexibility. Including amounts held in the off-balance sheet (for U.S. GAAP purposes), Qualified Special Purpose Entities (EPIL II and III), Elan has cash and investments of over $3.8 billion, which exceeds the company's $3 billion in debt. Elan may utilize a significant portion of its financial flexibility, given its announced plans to raise R&D expenditures, expand its U.S. and European marketing infrastructures, and pursue further acquisitions. Elan has historically used a significant amount of equity financing for its acquisitions, but, with the recent steep decline in its equity share price, Elan may have to use a higher percentage of cash financing for its future transactions. Elan also said that product sales growth may slow, due to delays in obtaining FDA product approvals. Standard & Poor's intends to assess Elan's projected financial flexibility and its levels of sustainable funds from operations, especially given recent questions regarding the company's accounting of R&D revenues, before resolving the CreditWatch. Ratings Placed on Creditwatch Negative Elan Corp. PLC Rating Corporate credit rating BBB Senior unsecured debt BBB Subordinated debt BBB- Athena Neurosciences Finance LLC Senior unsecured debt BBB Dura Pharmaceuticals Inc. Subordinated debt BBB- Elan Finance Corp. Ltd. Subordinated debt BBB- Elan Pharmaceutical Investments II Ltd. Subordinated debt BBB- Elan Pharmaceutical Investments III Ltd. Subordinated debt BBB- *Guarantor: Elan Corp. PLC

To: scaram(o)uche who wrote (942)	2/7/2002 12:56:55 AM
From: scaram(o)uche	Respond to of 2243

messages.yahoo.com messages.yahoo.com Let me get this straight..... Salomon Smith Barney sets a target of $55, 23 July 2001. Nothing material changes apart from the AN-1792 trial halt, but -- at $14 six months later -- they say "we heard nothing new today that makes us any more supportive/dismissive of the investment opportunity of ELN shares and we remain with a 2S (Neutral, Speculative Risk) rating." Give me a break. The SSB analysts are saying that they never even frigging read the deal details? EVERYONE ASSOCIATED WITH THE SECTOR KNEW EXACTLY WHAT ELAN WAS DOING. ANALYSTS CAN'T BE THIS BAD. THEY'RE JUST PLAIN COWARDLY.