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| Elan Announces Record Third Quarter 2000 Results |
Total Revenue Up 28%, Product Revenue Up 51%, Diluted Per Share Net Income
41 Cents for Quarter Before One-Time Gain an Increase of 28%
DUBLIN, Ireland, Oct. 19 /PRNewswire/ -- Elan Corporation, plc (NYSE: ELN)
("Elan") today reported net income of $153.8 million for the third quarter of
2000 compared with $90.4 million in the third quarter of 1999. Diluted per
share net income was 48 cents and 32 cents, respectively. A non-recurring net
investment gain of $23.8 million or 7 cents per share arose in the third
quarter of 2000. Adjusting for this one-time gain, diluted earnings per share
for the quarter were 41 cents compared with 32 cents in the comparable period
of 1999, an increase of 28 percent.
Total revenue for the third quarter of 2000 was $323.2 million compared
with $253.4 million in the third quarter of 1999, an increase of 28 percent.
Product revenue increased by 51 percent to $201.7 million compared to $133.1
million in the third quarter of 1999. Research revenue declined by 26 percent
from $43.6 million in 1999 to $32.4 million in 2000 and royalties and fees
increased by 16 percent from $76.7 million in 1999 to $89.1 million in 2000.
Total revenue for the nine months ended September 30, 2000 increased
27 percent to $917.3 million from $721.0 million in the prior year. Diluted
earnings per ordinary share increased from 87 cents in 1999 to $1.10 in 2000,
after adjusting for certain one-time gains and charges arising in 2000, an
increase of 26 percent.
On September 11, 2000, Elan and Dura Pharmaceuticals, Inc. ("Dura")
announced the signing of a definitive merger agreement for Elan to acquire
Dura. The merger is pending approval by vote of Dura's shareholders at a
special meeting scheduled to take place on November 9, 2000.
Donal J. Geaney, chairman and chief executive officer of Elan, said, "The
exceptional results reported for the third quarter led by the 51 percent
growth in product revenue underlines the successful transition in Elan's
business since 1996."
"During the quarter we entered into research and development
collaborations with Pharmacia Corporation focused on the research, discovery
and commercialisation of small molecule inhibitors of beta-secretase for the
treatment of Alzheimer's disease and with Biogen, Inc. to develop, manufacture
and commercialise Antegren(R), a humanised monoclonal antibody currently
nearing completion of Phase II clinical testing for multiple sclerosis and
Crohn's disease." Mr. Geaney added, "The acquisition of Dura, which we expect
to close in November 2000, will substantially increase our sales and marketing
infrastructure in the United States as well as expand our therapeutic areas of
interest to include respiratory, anti-infective and dermatology products. The
combined U.S. salesforce will exceed 1,000 sales representatives and will
enhance our ability to build our existing product franchises as well as
facilitiate the expected introductions of Myobloc(TM), frovatriptan and
ziconotide."
Mr. Geaney concluded, "With respect to near-term product introductions, we
are in final discussions with the U.S. Food and Drug Administration ("FDA")
concerning Myobloc and expect approval in the near future; we have responded
to all the questions raised on the approvable letter for frovatriptan
including the requested additional toxicity data; and with respect to
ziconotide we are also responding to questions raised by the FDA in the
approvable letter issued in June 2000."
Elan also announced, as a result of limitations imposed by pooling of
interests accounting treatment for the Dura acquisition, that it is
terminating its share repurchase programme initiated in the third quarter of
1999. Elan purchased 621,500 American Depositary Shares in the open market
during 1999.
Elan is a leading worldwide specialty pharmaceutical and drug delivery
company headquartered in Ireland, with its principal research and development,
manufacturing and marketing facilities located in Ireland, the United States
and Israel. Elan is focused on the discovery, development and marketing of
therapeutic products and services in neurology, pain management and oncology,
and on the development and commercialization of products using its extensive
range of proprietary drug delivery technologies. Elan's shares trade on the
New York, London and Dublin Stock Exchanges.
Statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties including,
without limitation, risks associated with the inherent uncertainty of
pharmaceutical research, product development and commercialisation, the impact
of competitive products and patents, the completion of the successful
acquisition of Dura, as well as other risks and uncertainties detailed from
time to time in periodic reports, including Elan's Annual Report for 1999 on
Form 20-F as filed with the U.S. Securities and Exchange Commission. The
company assumes no obligation to update information on its expectations.
Elan Corporation, plc
Consolidated Statement of Income
Three months ended Nine months ended
September 30, September 30,
1999 2000 1999 2000
US$000s US$000s US$000s US$000s
Revenues
133,127 201,663 Product revenue 389,851 539,519
43,568 32,411 Research revenue 126,147 99,220
76,734 89,125 Royalties and fees 204,997 278,548
253,429 323,199 Total revenues 720,995 917,287
Costs and Expenses
54,777 63,303 Research & development 169,551 199,835
53,243 70,577 Cost of goods sold 146,265 195,061
Selling, general
63,425 84,788 & administrative 181,241 244,619
171,445 218,668 Total operating expenses 497,057 639,515
81,984 104,531 Total operating income 223,938 277,772
10,548 51,741 Interest and other income (net) 27,676 89,124
Net income before tax and other
92,532 156,272 charges 251,614 366,896
(2,108) (2,426) Taxation (6,013) (7,926)
90,424 153,846 Net income before other charges 245,601 358,970
-- -- Other charges -- (198,251)
90,424 153,846 Net income 245,601 160,719
Weighted average number of
ordinary shares outstanding
267,389 289,924 (in thousands) 266,349 280,675
Basic earnings per ordinary share
$0.34 $0.53 before other charges $0.92 $1.28
Basic earnings per ordinary share
$0.34 $0.53 after other charges $0.92 $0.57
Diluted earnings per ordinary
$0.32 $0.48 share before other charges $0.87 $1.17
Diluted earnings per ordinary
$0.32 $0.48 share after other charges $0.87 $0.53
Elan Corporation, plc
Consolidated Balance Sheet
As at As at
December 31, September 30,
1999 2000
Assets US$000s US$000s
Current Assets
Cash and marketable investment securities 974,002 1,002,979
Other current assets 325,855 389,652
1,299,857 1,392,631
Intangible assets 989,655 1,540,626
Property, plant and equipment 233,112 259,279
Investments and marketable
investment securities 474,586 485,988
Total Assets 2,997,210 3,678,524
Liabilities and Shareholders' Equity
Shareholders' equity 1,326,369 2,208,051
Accounts payable and accrued liabilities 191,641 224,748
Short term debt 262,154 6,829
4.75% exchangeable notes 325,000 325,000
3.25% zero coupon subordinated
exchangeable notes notes 892,046 913,896
Total Liabilities and Shareholders' Equity 2,997,210 3,678,524
SOURCE Elan Corporation, plc
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CONTACT:
Investors, U.S., Jack Howarth or Mary
Ansaldi, 212-407-5740, or 800-252-3526, or Investors, Europe,
Emer Reynolds, 353-1-709-4000, or 00800-28352600, or Media, Max
Gershenoff, 212-407-5740, or 800-252-3526, all of Elan
Corporation, plc
