AFTER three days rest, the market started the week on a robust note. While the percentage gains were small, the advances were spread fairly evenly over the market.
The main feature was Elan Corporation, the Athlone-based pharmaceutical group, which has, in effect, contracted out a major part of the research and development work. Its quarter results to September 30th, 1996, were in line with expectation. This, and the formation of a new company, were greeted positively by the market, with a bid of $26 compared with an overnight price of $24 1/2.
The new company, Axogen, is hoping to raise $90 million and its American depositary shares will be quoted on the New York Stock Exchange. Elan will not own the company but an option agreement will allow it to take control in five years time.
Axogen will develop therapeutic products for the treatment of neurological disorders. Its main focus will be to try and find a cure for multiple sclerosis.
Banks were mixed. AIB rose 1p to 390p. Bank of Ireland fell 3p to 514p.
IFG wad unchanged at 28p. It was obviously unmoved by the announcement that Abtrust Fund Managers has purchased an additional one million shares in the company. The latter now has 4.6 per cent of the company, which represents an 11.6 per cent stake.
Ardagh was 2p better at 127p. A cash rich company and shareholders continue to wait to see if it will make an acquisition. However, the company is adamant that it will only buy for value.
CRH was a firm market. It rose 3p to 633p.
Going against the trend, Greencore went into reverse. The shares shed 5p and closed at 352p. Irish Permanent, however, was bright and it jumped 6p to 470p.
Irish Government bonds recovered some early losses in quiet trading on the back of benign US data, dealers said. Market friendly US data has steadied European markets and Dublin is moving better after being weaker across the curve in earlier trade, dealers said.
Earlier US labour department employment cost index for the third quarter rose by 0.6 per cent versus forecasts of 0.8 per cent.
