Pharmaceutical group Elan Corporation has announced the exercising of options, at $61.06 per share, to acquire the shares in Neuralab, an affiliate company that develops products for treating Alzheimer's disease. The consideration amounts to $76.3 million (€75.6 million).

The purchase follows the acquisition of Axogen, another affiliate which makes neurological and pain management products, for $182.8 million. This brings the total spending on acquisitions this week to $259 million.

Elan's last balance sheet showed cash and near cash of $811 million, so the purchases can be easily financed from internal sources. A spokesman said most of the price would be written off as an exceptional cost.

Neuralab was formed in August 1997 to fund a research and development programme to identify therapeutic compounds for use in the treatment of Alzheimer's disease.

Elan said it was funded initially through a private placement of units consisting of one Neuralab ordinary share and an initial warrant to purchase two two Elan American depository shares. The initial warrants will continue to trade on the New York Stock Exchange. The Axogen shares were purchased at $34.56, in line with the option granted in November 1996. This transaction is expected to be completed by December 31st.

Axogen was formed in September and is engaged in the development of products for the treatment of neurological disorders and for pain management.