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ELAN REPORTS FIRST QUARTER EARNINGS UP 69 PERCENT

 ATHLONE, Ireland, July 27 /PRNewswire/ -- Elan Corporation, plc (AMEX: ELN) today announced a 69 percent increase in net income to 7,216,000 Irish pounds (IR) (U.S.$10,426,000) in its first quarter ended June 30, 1993, compared with IR4,274,000 in the corresponding quarter last year. Earnings per share increased to IR0.22 (U.S.$0.32) from IR0.13, an increase of 69 percent.
 Revenues for the quarter were IR25,281,000 (U.S.$36,530,000) compared to IR19,709,000 in the first quarter of the previous year, an increase of 28 percent, analyzed as follows:
 ELAN CORPORATION, PLC
 Quarter Ending June 30 1992 1993 1993
 IR000 IR000 U.S.$000
 Manufacturing & distribution 12,827 12,827 18,530
 Contract development 2,003 5,870 8,482
 Royalties 2,493 5,315 7,680
 License and option fees 2,386 1,269 1,838
 Total revenue 19,709 25,281 36,530
 In commenting on the results Donald E. Panoz, chairman and chief executive officer of Elan said: "It is gratifying to be able to report continuing growth in revenues and net income for the first quarter. In particular, royalty income increased by 113 percent reflecting growth in royalties from Cardizem CD, Verelan and royalties received pursuant to a recent litigation settlement involving the Nicotine patch. Contract development revenue increased by 193 percent reflecting revenue from a number of key projects, most notably Naprelan where we completed a number of large scale clinical trials on behalf of Drug Research Corporation, plc. (DRC) in advance of the submission of an NDA to the United States Food and Drug Administration. Manufacturing and distribution revenues remained constant as compared to the first quarter in fiscal 1993 reflecting the changeover by Marion Merrell Dow to the marketing of Cardizem CD in preference to Cardizem SR and also reduced sales of the Nicotine patch in the United States compared with the first quarter of fiscal 1993. Manufacturing and distribution revenues associated with the growth in sales of Verelan in the United States and sales of Elan products in other markets offset these declines. All operating units performed satisfactorily in the quarter."
 Elan completed the acquisition of DRC on July 6, 1993 through the issue of 2,485,358 ordinary shares in Elan to holders of DRC ordinary shares. As a result of such acquisition, Elan will incur a one-time charge against earnings in its second quarter of approximately $83 million reflecting the acquisition of in-process research and development. Also on July 14, 1993, Elan initiated a rights offering to its shareholders to fund Advanced Therapeutic Systems, Limited (ATS) which has contracted with Elan to develop products which utilize three of its technologies. The rights offering which will conclude on Aug. 12, 1993, is seeking to raise between $77 and $109 million for ATS (inclusive of an Elan cash contribution of $35 million). Elan will incur a one-time charge to earnings of $35 million (i.e. the amount of Elan's cash contribution to ATS) in the quarter in which such contribution is made, which is currently expected to be the second quarter of fiscal 1994.
 Elan Corporation, plc is a world leader in the specialized health care field of advanced reformulations and drug delivery, concentrating on improved drug absorption and utilization. Elan operates research and manufacturing facilities in Athlone, Ireland; Gainesville, Ga.; Brea, Calif. and Cambridge, Mass., in the United States; Enschede, the Netherlands; Manila, Philippines and Mezzovico, Switzerland. Currently 19 Elan products have received regulatory approval for marketing in one or more of 36 countries worldwide.
 ELAN CORPORATION, PLC
 Consolidated Statement of Income
 (Unaudited, in thousands)
 Three months ended June 30 1992 1993 1993
 Irish pounds US$
 Revenues 19,709 25,281 36,530
 Costs and expenses
 Cost of goods sold 7,950 10,124 14,629
 Selling, general and administrative 5,416 5,905 8,533
 Research and development 2,521 3,126 4,516
 Total operating expenses 15,887 19,155 27,678
 Operating income 3,822 6,126 8,852
 Interest and other income 825 2,907 4,200
 Interest expense (6) (1,440) (2,081)
 Minority interest (20) 20 29
 Income before tax 4,621 7,613 11,000
 Taxation (347) (397) (574)
 Net income 4,274 7,216 10,426
 Earnings per ordinary share 0.13 0.22 0.32
 Weighted average number of
 ordinary shares outstanding
 (in thousands) 32,021 32,680 32,680
 (A) -- Translated for convenience at the closing rate on June 30, 1993 of US$1.4450 equals one Irish pound.
 ELAN CORPORATION, PLC
 Consolidated Balance Sheet
 (in thousands)
 3/31/93 6/30/93 6/30/93
 (Unaudited)
 Irish Pounds US$
 Assets
 Current Assets:
 Cash and cash equivalents 90,182 28,915 41,782
 Short-term investments 69,298 131,230 189,627
 Accounts receivable 14,383 21,264 30,727
 Inventories 9,999 10,958 15,834
 Prepayments and other assets 2,721 3,623 5,235
 Total current assets 186,583 195,990 283,205
 Fixed Assets:
 Property plant and equipment (net) 34,590 39,934 57,704
 Other Assets:
 Investments 974 797 1,152
 Intangible assets (net) 34,362 34,600 49,997
 Total 35,336 35,397 51,149
 Total 256,509 271,321 392,058
 Liabilities and Shareholders' Equity:
 Current Liabilities:
 Accounts payable 10,241 11,660 16,848
 Accrued expenses and
 other liabilities 10,020 12,811 18,513
 Long-term debt -- current portion 13 13 19
 Total 20,274 24,484 35,380
 Government grants 2,807 2,722 3,934
 Long-term debt 95,625 96,494 139,434
 Minority interests (76) 180 260
 Total 98,356 99,396 143,628
 Shareholders' Equity:
 Share capital 1,155 1,159 1,674
 Additional paid-in capital 93,152 94,204 136,434
 Translation adjustment 62 1,352 1,954
 Retained earnings 43,510 50,726 73,298
 Total 137,879 147,441 213,050
 Total 256,509 271,321 392,058
 Translated for convenience at the noon buying rate in New York on June 30, 1993 of US$1.4450 equals one Irish pound.
 -0- 7/27/93
 /CONTACT: Michael Barry, vice president-finance, or Brian Crotty, vice president-communications and investors relations of Elan Corporation, 0902-94666/
 (ELN)


CO: Elan Corporation, plc ST: IN: MTC SU: ERN

TS-PS -- NY001A -- 6023 07/27/93 07:56 EDT
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Date:Jul 27, 1993
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