The pharmaceutical company, Warner Chilcott, which has close links with Elan, has registered with the US Securities and Exchange Commission for a flotation worth between $48 million and $54 million on the Nasdaq stock exchange.
A spokesman said the company, in which Elan has a 30 per cent stake, hoped to contract out some of its drugs manufacturing operations to Irish companies following its flotation.
The company announced yesterday it had filed a statement with the SEC for a proposed initial public offering of three million American Depositary Shares. "The offering price is expected to be between $16 and $18 per ADS," according to a company statement.
Mr David Kelly, group vice president in the company's finance section, said its operations were currently US-based but part of its expansion plans were to produce its commercially-branded products in Ireland.
Warner Chilcott manufactures prescriptive pharmaceutical products for the dermatology, cardiology and women's health care speciality markets. Mr Kelly said it had sales turnover of $80 million in 1996.
Warner Chilcott was founded by Elan in 1992 - it was then known as Nale Laboratories Ltd. It was renamed after its purchase of the Warner Chilcott division of Warner-Lambert last year.
It operates closely with Elan, utilising the pharmaceutical giant's research expertise. In the year ended March 31st, 1996, Elan received revenues from Warner Chilcott amounting to $12,406,000. But according to Elan's 1996 annual report, its share of losses of associates increased in that same period by 73 per cent, from $2,436,000 to $4,206,000, "reflecting the inclusion of Elan's share of losses of Warner Chilcott plc offset in part by improved operating results from the company's joint ventures".
