Elan shows 29% rise in quarter year profits

Elan Corporation has reported strong growth in the first quarter of 2000 and is optimistic about the outlook for the rest of the year.

The Dublin-based pharmaceutical and bio-technology company delivered a 29 per cent rise in pre-tax profits from $77 million (€83.4 million) to $99.5 million in the three months to the end of March. Diluted earnings per share increased by 30 per cent to 34 cents.

Shares in Elan closed lower in Dublin yesterday as the company suffered from concerns about inflationary pressures in the US market. The shares ended the day at €49.50 down €1.91.

Total revenues rose by 24 per cent to $290 million and were primarily driven by strong growth in product sales, royalties and fees. Product sales climbed to $150.6 million, up 18 per cent on the same period last year, while royalties and fees were up 57 per cent to $105 million as a result of the execution of several new licence arrangements during the quarter. Elan said sales of its directly marketed products in the US market grew by 34 per cent on 1999. Research revenue was slightly lower at €33.7 million compared with €38.3 million last year mainly due to the Elan's acquisition of Axogen and Neuralab.

Research and development expenditure rose to $708 million, up 22 per cent, primarily related to clinical trials for drugs such as Antegren, Elan's prospective treatment for inflammatory disease and AN-1792, the treatment for Alzheimer's disease.

Elan chairman and chief executive, Mr Donal Geaney, said the first quarter had been a satisfactory period for the company and was optimistic about the outlook for the remainder of 2000.

So far this year, Elan has linked up with American Home Products Corporation to collaborate in research and development and marketing of An-1792. It has also entered into a merger agreement with The Liposome Company which, if approved, should be completed by mid-May. The new drug application for ziconotide has been accepted as filed by the US Food and Drug Administration and Zonegran, a new anti-epilepsy drug has also received approval.