Dublin-based pharmaceutical group Elan has reported further strong growth in the third quarter. Pretax profits rose 70 per cent to $154 million (€183 million) from $90.4 million in the corresponding period last year.

The company has also signalled the imminent approval of its dystonia treatment, which will be marketed as Myobloc, by the US Food and Drug Administration (FDA). This approval is expected to be a key driver for the share price.

There was heavy trading of Elan shares in New York yesterday on foot of the figures. The shares rose to $51.50, up over $1 at midday, while in Dublin the shares were 25 cents higher at €61. A one-off investment gain of $23.8 million following the sale of some assets during the period helped the figures. Taking this into account the company recorded an underlying increase of 44 per cent in the three months to the end of September. Adjusting for this gain, diluted earnings per share were 28 per cent higher at 41 US cents, compared with 32 US cents in the same period last year.

Revenue was up 28 per cent to $323 million from $253 million in the third quarter. Product revenues were particularly strong, up 51 per cent to $201.7 million. Research revenue slipped by 26 per cent to $32.4 million while royalties and fees rose by 16 per cent to $89.1 million.

Commenting on the results yesterday, Elan finance director Mr Tom Lynch said revenues exceeded those achieved in the whole of 1996 and showed the underlying growth of the company over that period.

In the period, Elan entered a research and development collaboration with Pharmacia focused on the development and commercialisation of small molecule inhibitors of beta-secretase for the treatment of Alzheimer's disease. It entered a similar arrangement with Biogen to develop, manufacture and commercialise Antegren, a humanised monoclonal antibody currently nearing completion of clinical testing for multiple sclerosis and Crohn's disease.

In September, Elan acquired the Dura Pharmaceuticals group in the US, a deal which is due to be approved by Dura shareholders in November. The acquisition is expected to substantially increase its sales and marketing infrastructure in the US as well as expand its therapeutic areas of interest to include respiratory, anti-infective and dermatology products.