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

To: Icebrg who wrote (4309)	4/29/2003 10:02:27 AM
From: glen	Respond to of 10345

Elan<ELI.I> to post Q1 loss but show some progress Reuters, 04.29.03, 8:36 AM ET By Kevin Smith DUBLIN, April 29 (Reuters) - Elan Corp Plc (nyse: ELN - news - people) <ELN.L>, the Irish drugs company undergoing a radical restructuring, is expected to post a hefty quarterly loss this week but analysts said on Tuesday the firm may also show signs of progress. The former high-flyer, whose stock collapsed last year amid concerns over its book-keeping and heavy debts, is seen posting a first-quarter loss per share on Wednesday of around 40 U.S. cents versus earnings of 17 cents in the same period last year. Elan, which has been cutting jobs and selling assets to avert a cash crunch, is expected to report an operating loss of around $120 million against a profit of $68 million previously. However, the company's Dublin broker said it anticipated a seven percent rise in quarter-on-quarter revenues in the first three months of 2003, once sales from products that are part of the divestiture plan had been stripped out. "These results will include products that are in the process of being sold or have been sold subsequently, which will fall out of the equation going forward," Jack Gorman, analyst at Davy Stockbrokers said. Excluding revenues from drugs that are part of Elan's disposal plans, Gorman forecast "ongoing product" sales of $129 million versus $121 million in the fourth quarter of 2002. He said there were investor hopes the company, which at one time had the largest weighting on the Irish stock market, would be able to report forward movement in several areas including its position on meeting a $1.5 billion bond due at year-end. "I think the market is anticipating progress on the operating side, and in terms of various issues such as the bonds and the balance sheet which have been weighing over the last six to nine months," Gorman said. David Marshall at NCB Stockbrokers said the market would also be interested in progress on cost reduction, further asset disposals, and news of a lawsuit Elan has taken against King Pharmaceuticals (nyse: KG - news - people) after the U.S. company said it was backing out of a deal to buy muscle relaxant Skelaxin and sleep aid Sonata. The King deal is seen by Elan investors as key to the company's recovery plan. A timeframe for news of clinical data from trials on Antegren, Elan's much-vaunted treatment for multiple sclerosis and Crohn's Disease, would also be keenly sought, he added. Elan shares, which in recent weeks have clawed back some of the damage done when the King deal stalled, were down three percent at 3.1 euros ($3.40) in Dublin by 1130 GMT in relatively low volume. The stock mainly trades in New York. Copyright 2003, Reuters News Service