May 30, 1999. This Ireland based specialty pharmaceutical firm appears poised for tremendous sales
and earnings expansion over the next few years. Elan will leverage their proven success in new drug delivery technologies
to commercialize their own proprietary portfolio of promising new neurological and other drugs.
New products being introduced by Elan licensees include Verelan PM antihypertensive and Prostep
OTC nicotine. Elan itself plans to launch a bevy of new drugs, such as Zonegran for epilepsy, Ziconotide for acute
and malignant pain, Miguard for migraine headaches, Neuroblic for cervical dystonia and Antegren foe multiple sclerosis;
contingent on FDA approval.
In 1999, Elan is expected to see a profit of $2.49 per share, representing an improvement from
the prior year deficit of minus $9.83 per share. Forecast for year 2000 earnings at Elan are expected to have a
rate of growth greater than anticipated for the broad market.
I can say now that I missed the chance to get in on this stock last year when it was trading
at about $49, but right now it seems to be on the right track for the future, especially if the FDA approves their
upcoming drugs. The drugs are very promising. If every thing goes as expected, you would be looking at a price
point of $90-$95 a share by the end of 2000 to mid 2001. Ticker: ELN.
George
