Elan "neutral," target price reduced

10/27/06 - J.P. Morgan Securities

NEW YORK, October 27 (newratings.com) - Analyst Annie J Cheng of JP Morgan maintains her "neutral" rating on Elan Corp (EAN), while revising her estimates for the company. The target price has been reduced from $15 to $14.

In a research note published this morning, the analyst mentions that the company already has 4,500 patients in the US risk inpatient registry for Tysabri and has an additional 500-600 patients dosed in Europe. Elan is on track to certifying its targeted 2,000-2,500 physicians and infusion centers in the US by end-2006, the analyst says. JP Morgan expects Tysabri end-market sales to reach $2.1 billion by 2011. The company has lost $20 million in Maxipime sales on account of supply issues, the analyst reports. The EPS estimate for 2006 has been raised from -$0.77 to -$0.74. The EPS estimates for 2007 and 2008 have been reduced from -$0.18 to -$0.42 and from $0.22 to $0.10, respectively.