Elan Corporation PLC - Joint Venture, etc

RNS No 6288p
ELAN CORPORATION PLC
1st October 1997

                                                                              
BIOJECT MEDICAL TECHNOLOGIES AND ELAN CORPORATION FORM JOINT VENTURE AND DRUG 
                              DELIVERY ALLIANCE                               
                                                                              
    Anticipated First Product Is A Patch-Like Sensor and Wrist Watch-Type     
      Monitoring Device that Measures Glucose Levels On A 24-Hour Basis       
                                                                              
  Elan Agrees to Make $3 Million Equity Investment in Bioject And To Invest   
     $500,000 in Biojects Development of Needle-Free Pre-Fill Technology      


PORTLAND, OREGON, October 1 1997 - Bioject Medical Technologies (NASDAQ: BJCT)
today announced it has established a joint venture with Elan Corporation, plc
(NYSE: ELN) for the research, development and commercialisation of a
continuous glucose level monitoring system for diabetics.

The ambulatory monitoring system will comprise a patch-like sensor coupled
with a wrist watch-type monitoring device that continuously and precisely
measures glucose levels on a 24-hour basis.  This real-time monitoring system,
whose sensor will require changing only once daily, should serve as the
preferred alternative for diabetics who now rely on static glucose monitoring
systems requiring self-administered finger-prick readings at least four times
daily.  Human clinical trials for the monitoring system are expected to begin
in early 1998.

Said Jim OShea, chairman, president and chief executive officer of Bioject:
"this joint venture provides a platform for us to build our product portfolio
in concert with Elan, and marks a new chapter in our own growth and
development.  Our collaborative effort should significantly enhance the
position of both companies in the enormous market for glucose testing.  We
anticipate building on the alliance with Elan to the benefit of our
shareholders, employees and customers".

OShea continued: "we are pleased that Elan will participate in the development
of a pre-fill format of our needle-free technology in order to create a unique
delivery system for its own pipeline of injectable drugs.  Pre-fill formatting
- which will allow medicines with standardised dosage to be pre-packaged in
needle-free applicators - will benefit a wide range of customers, including
pharmaceutical companies that package and distribute the product, and
end-users, such as patients and caregivers".

Said Michael Sember, Elans vice president of planning, investments and
development, who will be appointed to Biojects Board of Directors: "we are
looking forward to working with a highly innovative company like Bioject that
has a proven track record in developing and manufacturing products, meeting
FDA standards and bringing products to market.  With Bioject, we can
collaborate with a strong US-based partner to bring our glucose monitoring
technology successfully to market.  In addition, our participation in Biojects
development of needle-free pre-fill technology will give Elan access to a new
innovative drug delivery system".

Added Sember: "based on current market studies, we believe the continuous
glucose monitoring system we are developing has tremendous market potential. 
In contrast to most products in the marketplace, our ambulatory system will
provide a disposable skin patch-like sensor that is patient-friendly,
minimally invasive, easy to use - coupled with a lightweight monitoring
device.  In addition, by providing accurate information on a real-time basis
at considerably less effort, our continuous system is likely to foster better
monitoring.  Better monitoring and glucose management can help patients avoid
the worst complications of diabetes.  We anticipate that our product will be
competitively priced accounting for the enhanced performance it will provide
over existing technologies in the marketplace".

Established as a majority owned subsidiary of Bioject, this joint venture will
be 80.1% owned by Bioject and 19.9 percent owned by Elan.  The entity will
licence on an exclusive basis certain manufacturing and marketing rights to
Elans glucose monitoring technology for an initial payment of $15 million. 
After the commencement of human clinical trials or April 1, 1998, which ever
comes first, responsibility for funding further development costs will pass
from Elan to the joint venture.  In connection with the license agreement and
joint venture, Elan and Bioject have entered into financing arrangements that
will result in Elan making a loan to - or, subject to a vote of Bioject
shareholders, acquiring a significant equity interest in - Bioject.  When the
technology is approved for market, Elan will receive a royalty on all products
sold.

Elan has also agreed to make a $3 million equity investment in Bioject common
stock at $1.10 per share.  Additionally this equity investment will provide
Elan warrants with a five-year expiration to purchase 1.75 million shares of
Bioject common stock at $2.50 per share.  In a separate transaction, Elan will
invest $500,000 in the development of Biojects pre-fill needle-free injection
technology.

The joint venture - which is subject to the execution of definitive agreements
and other customary conditions - will have the benefit of Biojects affiliation
with several industry leaders including Jim Weersing who founded LifeScan,
Inc., an established industry player now wholly owned by Johnson & Johnson and
David deWeese, a Bioject board member, who founded Cygnus Therapeutics, Inc.,
a major producer and developer of drug delivery and diagnostic systems.

Bioject develops, manufactures and markets jet injection systems for
needle-free drug delivery.  The companys advanced injection management system,
the Biojector 2000, has received the Seal of Acceptance from the Alliance of
Childrens Hospitals, Inc and is being marketed to hospitals, public health
clinics and physician offices.  The company is also developing a system for
Hoffmann-La Roche to market specifically with their products.

Elan Corporation, plc is a leading worldwide drug delivery and
biopharmaceutical company with its principal research and manufacturing
facilities in Ireland, the United States and Israel.   Elans shares trade on
the New York, London and Dublin Stock Exchanges.

Certain statements in this press release, including statements concerning the
formation of a new subsidiary of Bioject, the development, testing, marketing
and product characteristics of glucose monitoring and pre-filled needle-less
injection products intended to be developed and other statements that are not
statements of historical fact are "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.  There are a
number of factors which could cause actual events to differ materially from
those projected in the forward-looking statements, including uncertainties as
to the timely satisfaction of conditions to closing of the agreement, the
parties ability to develop the products presently contemplated, the
possibilities of delays, the availability of adequate additional financing,
uncertainties involving the ownership and protection of proprietary
technology, the possibilities that competing technology could be developed by
others and other risks and uncertainties described in Biojects report on Form
10-K for the fiscal year ended March 31, 1997 and other reports filed with the
Securities and Exchange Commission.

For further information:

BIOJECT MEDICAL TECHNOLOGIES
Jim OShea or Peggy Miller
503 639 7221

or

Bob Gonnelli
201 818 1724


ELAN CORPORATION PLC
Mike Sember or Mary Bingham
212 755 3218

or

Judy Brennan
Sard Verbinnen & Co
212 687 8080


1 October, 1997


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