Goodbody Stockbrokers is recommending Elan as a good bet for investors at the moment, setting a share price target of $65 (£59). The company has reported solid growth in the third quarter and came in marginally ahead of brokers' forecasts for the fourth consecutive quarter.

Goodbody maintains its full-year forecasts for 2000 and for 2001, but they will be reviewed after the Dura deal closes this week. In its report, Goodbody states that as far as the share price is concerned, the key outstanding issue is whether or not management can deliver product launches within the time-frames it has set for itself.

With some queries from the US Food and Drugs Administration on Zinconotide still to be answered, it now looks less likely that the drug will be approved and launched before year-end, but this news appears to be already priced in with the fall in the share price from highs of $66.

Elan shares now trade at a discount to the US speciality pharmaceutical sector, despite having one of the highest growth profiles and are being highlighted by Goodbody.