Elan has had a roller-coaster ride recently but is still viewed as a good long-term bet for investors. Merrill Lynch Stockbrokers has issued a buy recommendation for the stock, predicting strong growth in the share price over the long term.

The brokers believe Elan is entering a new phase of growth that should allow the company to reach and possibly exceed its corporate goals over the next five years. Over that period Elan is aiming to achieve $2 billion (#1.8 billion) in sales and a market capitalisation of $20 billion - or $1.50 a share, almost double its current value. This year Elan is expected to file for registration of new drugs in each quarter and also plans to launch at least two important products this year.

As the new products move through the regulatory channels and are launched successfully, Merrill Lynch suggests there will be a modest pickup in earnings growth.