OTCDD

[KauaiPI]

xxxrayeyes~ (ELN)~earnings out and appears much interest

ELAN CORP PLC (NYSE:ELN)
Last Trade 4:01pm · 3.84 Change +0.48 (+14.29%)
Prev Cls 3.36 Open 3.33 Volume 4,272,500
Day's Range 3.31 - 3.85
Mkt Cap 1.343B Avg Vol 3,103,111
52-wk Range 1.03 - 12.60
-------
4-30-03 a slight dip;

In other pharmaceutical news, Elan Corp. said it had a first-quarter net loss of $130.2 million, or 37 cents per share. In the 2002 first quarter, the Irish drugmaker had a net profit of $50 million, or 14 cents per share.

Dublin-based Elan said revenue plunged 42 percent to $260 million. Elan has been beset by numerous problems, including concerns about the company's accounting and its financial resources. Elan is under new management and in the midst of a turnaround effort that has included the sale of assets.

U.S.-listed shares of Elan (ELN:) nudged down 2 cents to $3.36.
from; http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...
------
Elan posts Q1 loss but seen making progress
Wednesday April 30, 8:51 am ET
By Kevin Smith

DUBLIN, April 30 (Reuters) - Embattled Irish drugs firm Elan Corp Plc (London:ELN.L - News; NYSE:ELN - News) posted a first-quarter net loss of $130.2 million on Wednesday, but said it had progressed with cost cutting and was on track with a radical restructuring plan.

The company, which has been cutting jobs and selling assets to avert a cash crunch at the end of the year, reported a 42 percent drop in total revenues to $260 million in the three months to end-March, but said revenue from retained products had risen 43 percent to $148 million.

However, it said it had reduced its total cash-burn to $332 million from $377.5 million previously, with selling, general and administration expenses down 29 percent to $127.7 million.

Elan has raised nearly $800 million from asset divestitures, and cut its workforce to around 3,000 from 4,700 at the start of its restructuring in July 2002.

"Elan remains on course with its 18-month recovery plan," Chief Executive Kelly Martin said in a statement.

"While there is much to be done, we remain focused on executing our goals of simplifying Elan's balance sheet, streamlining our operational model and advancing our science and product development," he said.

--more-- http://biz.yahoo.com/rf/030430/health_elan_1.html
------
Ian Hunter, analyst at Goodbody Stockbrokers, said sales were better than forecast but margins were a disappointment. "We would've expected to see more evidence of the cost-cutting coming through," he said. Overall, "the results add nothing new," Mr. Hunter said.

However, Davy Stockbrokers analyst Jack Gorman says the results are "modestly better than forecast."

Mr. Gorman says selling, general & administrative, or SG&A, operating expenses were reduced by 27% year-on-year to $127.7 million, better than Davy's own SG&A cost-reduction forecast of 8%.

Analysts are more closely focused on Elan's recovery plan, though. Elan is trying to sell assets to raise $1.5 billion in cash by year-end to mend its balance sheet. In the last nine months, Elan has disposed of $825 million worth of businesses.

Despite the slew of disposals, one critical transaction has been bogged down in litigation, throwing the timetable into question.

Elan was on course to sell Skelaxin (News - Websites)and another drug, Sonata (News - Websites), to King Pharmaceuticals Inc. (NYSE:KG - News) , but the U.S. Federal Trade Commission is currently investigating the marketing practices of Skelaxin, a muscle relaxant.

King wants to cancel the deal, while Elan wants to force King to follow through on its purchase. The two meet in court May 15. As a result, Elan is hampered by legal constraints on what it can say about the King matter.

Elan Chief Executive Kelly Martin did say, though, that his company "remains on course with its 18-month recovery plan. We further reduced costs during the quarter, which put us closer toward our goal of operating Elan on a break-even basis prior to the launch of our new products."

Elan's delivery of its recovery plan "remains critical," said Peter Frawley, analyst at Merrion Stockbrokers. He said the group's operating cash burn rate appears to be under control but "the group has still to deliver significant disposals if it's to avoid a significant equity issue to (debt) holders at year- end," he said.

Given that the group's liabilities remain in excess of $3 billion, Mr. Frawley added: "It's difficult to envisage the group being in a position to satisfy its obligations in cash without executing further on its disposal program and we await further details of progress on this front."

The company is still undergoing a probe by the U.S. Securities & Exchange Commission into its accounting practices. Elan didn't give any update on the investigation.

"From a profit-and-loss perspective, investor focus will remain on individual product revenue trends and progress on operating cost reductions," according to Mr. Gorman, the Davy Stockbrokers analyst.

Since its recovery plan was announced last year, Elan has been trying to reconfigure itself focusing on the core areas of neurology, pain management and autoimmune diseases.

Goodbody's Mr. Hunter believes Elan's recovery plan "centers around Antegren and the Alzheimer suite of products." But he doesn't expect any significant news on this until late 2003.



--more-- http://biz.yahoo.com/djus/030430/0730000956_1.html
--------
I know this is still a recovering situation but with the volume and share price increase of late, I am of the opinion that this one is posed for some healthy inflows of investor interest and that the next few weeks will be critical in light of the pending litigation with KG. If that goes in ELN's favor then the 12/03 worries about pending debt conversion should cease. And that projection does not take into account the apparent agressive buying back of its bonds in the secondary markets at discount.

Still looking to hear from you, Josh, as to am I crazy or what <g>

best!
kp