The US Food and Drug Administration (FDA) has approved a high-dosage form of Elan's arthritis drug, Naprelan, made by rival drugmaker Andrx Corp.
The Florida-based company said it planned to begin selling 500-milligram forms of the drug from September.
However, analysts said the news had little significance for Elan as it was a very small element of the company's portfolio.
Unlike Zanaflex and Skelaxin, key Elan drugs facing generic competition, Naprelan is not a major product for Elan.
Sales have been falling following the arrival on the market in recent years of an enhanced product. Turnover of Naprelan dropped from $35 million (€35.68) in 2000 to $8.2 million last year and analysts were pencilling in sales of just $5 million this year.
Shares in Elan fell sharply yesterday but analysts said it was unrelated to the Naprelan news."The stock ran up on takeover rumours and now those rumours are losing credibility," one dealer said.
In Dublin, the shares lost 75 cents, or nearly 21 per cent, to €2.85. In New York, where they are mainly traded, they closed 11.89 per cent lower at $2.89.
Trinity Biotech completes acquisition
MEDICAL firm Trinity Biotech has completed its acquisition of the blood-test division of US group Sigma Diagnostics.
The acquisition, which analysts estimate may have cost €7 million, will see the transfer of a small manufacturing operation from Missouri in the US to Dublin at the beginning of next year.
Trinity is currently completing a similar transfer on the back of a €7 million blood-test acquisition made last year.
Trinity, which began formal acquisition proceedings for the Sigma division at the start of July, has estimated that combined revenues from the two new additions will total $19 million over the next 12 months.
The company predicts that the latest acquisition will be earnings-neutral in 2002 and "earnings-enhancing" in 2003.
Green debt rating affirmed by Fitch
RATINGS agency Fitch Ratings has affirmed its BBB/F3 rating on Green Property's debt but has maintained a "Rating Watch Negative" status on the company.
Fitch has also affirmed a BBB rating on Green's £150 million sterling (€235 million) 2016 Eurobond, again maintaining the Rating Watch Negative Status.
The affirmation comes upon news that bondholders now have the option to put their bonds back to Green for redemption at par. If this mechanism is not used at this time, Green can make an offer to acquire the bonds at a price which may not be par.
Green is currently in the midst of a takeover led by chief executive Mr Stephen Vernon. The €1.05 billion cash offer for the company made by Mr Vernon's Rodinheights vehicle had secured the approval of more than 80 per cent of Green shareholders by the start of this month.
Remaining ITV Digital assets for sale
BRITAIN'S ITV Digital is expected to head into liquidation in October after the remaining assets of the collapsed pay TV company are sold next month, the administrators said yesterday.
"We are currently taking steps in consultation with the creditors' committee to place the company into liquidation which we anticipate will take place in October," administrator Mr Nick Dargan said in a statement.
ITV Digital collapsed in April, having cost owners Granada and Carlton Communications £1 billion sterling for shareholders. Administrators pulled the plug on ITV Digital after failing to find the money to settle its bills or a buyer for the business.
The administrators said the contents of the digital broadcast centre and the head office and disaster recovery facility would be auctioned on September 4th-5th. "The auction marks the last stage of the ITV Digital administration prior to the company being placed into liquidation," Mr Dargan said.
He said there had been substantial asset realisations to date and he hoped that the sale proceeds of the auction would further enhance the funds available for creditors generally. He gave no details on how much has been accrued.
ITV Digital failed to get the audiences it expected despite giving away set-top decoders and was put into administration when it failed to renegotiate a contract with its main creditor, the English Football League, to broadcast football matches for divisions below the elite premier league.- (Reuters)
