Transitional First Quarter For Elan Corp

The Irish pharmaceutical company Elan Corp achieved net income in thefirst three months of 1997 of $37.2 million, up just over 30%, with earnings per share of 36 cents, which rose 2.8%. Total revenues amounted to $89 million, up 18.8%. Product sales grew 29% to $52.6 million, and royalties and fees increased 14% to $26.7 million.

Sales and earnings of Athena Neurosciences, which was acquired by Elan last year, are consolidated in the current results but excluded from the prior period, the company said. Athena's sales in the 1997 first quarter included the launch of supplies of Zanaflex (tizanidine HCl: Marketletters passim) in February. It is the first product for the treatment of spasticity to be approved in the USA in over 20 years, according to Elan.

Its chairman and chief executive Donal Geaney, in reviewing the three-month performance, commented: "the quarter represents a fundamental transition of Elan's business where the proportion of product sales directly marketed exceeded 70% of total product sales. The higher gross margins from these sales sustained a 30% increase in net income for the quarter."