THE Athlone based pharmaceutical development company, Elan Corporation continues to record strong growth. Pre-tax profit rose by 35 per cent from £42.1 million to £56.8 million in the year to March 31st, 1996. Revenue jumped by 19 per cent from £118.9 million to £141.7 million.

Growth accelerated in the fourth quarter, according to figures published yesterday. Pre-tax profit grew by 67 per cent to £18.1 million in that quarter and accounted for 32 per cent of the year's profits. Sales also grew at an impressive rate with a rise of 58 per cent to £47.1 million.

Most of this growth came from product sales which almost doubled to £26 million in the final quarter, helped by the launch of three new products, said Mr Thomas Lynch, executive vice president and chief financial officer.

The most important product was Naprelan, which is used for sufferers from arthritis. This product was shipped to Wyeth Ayerst division of American Home Products, its marketing partner in the US.

Elan continues to squeeze plump margins from its sales. The profit margin went up from 35 per cent to 40 per cent.

A breakdown of sales shows a rise from £57.1 million to £65.6 million from products.

There was an increase from £21.1 million to £22.8 million from research and a gain from £40.7 million to £53.3 millions from royalties and fees. The rise in royalty income reflects a growth in the once a day heart drug, Cardizem CD, and other marketed products in Europe and Asia.

The group's net income went up from £41.7 million to £56.4 million. Earnings per share improved from £1.17 to £1.51.

Elan remains in a strong financial position. If the subordinated loan notes of £103 million are taken as debt, the gearing amounts to a low 23 per cent. However, as these can be converted into equity, it could be argued that they are equity.

The three new products are expected to make a contribution this year. Elan has not made any forecast, but Mr Lynch said he expected growth to continue this year.

Elan announced the proposed acquisition of a US drug firm, Athena Neurosciences, for £406 million, in March. Under the deal, which involves the issue of new Elan shares, Athena share holders will end up with 20 per cent of the enlarged group. The deal is expected to be completed by June 30th.

Elan increased the number of employees in its Athlone plant by 250 to 760 over the past 18 months. It employs 1,250 people worldwide.