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Irish drugs firm
Elan today reported a net loss of
$213m in the second quarter but an improved operating
performance. Its financial results were hit by the recent
$206.3m fine and costs arising from the mis-marketing of the
product Zonegran.
Elan reported a net
loss of $213m for the three months to the end of June, up from a
$68.2m loss a year earlier. But, excluding the US settlement,
the net loss fell to $20m, boosted by a 14% reduction in
day-to-day costs.
Revenue dropped 4%
to $268.9m, mainly due to a 29% dip in revenue from its Elan
Drug Technologies (EDT) business, which the company said was
due to the timing of drug shipments. Sales of Elan's
multiple sclerosis drug Tysabri rose 19% from a year earlier to
$207.4m, with 2,400 more patients now using the treatment.
For the first six months of the
year, revenue was up 10% to $579.4m, with Tysabri sales 22% ahead.
Elan CEO Kelly Martin
commented, "Our second quarter results demonstrate
continued progress across our major areas of focus. Tysabri growth increased in
terms of net patient additions; our BioNeurology pipeline advanced, including
completion of the ELND005 Phase 2 trial and full enrollment of the STRATIFY 1
trial studying the JC virus assay; we also saw recently launched EDT licensed
products continue to grow in terms of revenue and market share for our
licensees."
Commenting on the results, Elan
executive vice president and chief financial officer, Shane Cooke said that the
firm was very pleased with the operating performance in the first half of the
year. Revenues grew by 10% which, coupled with a decrease of 14% in operating
expenses, resulted in a six-fold increase in Adjusted EBITDA to $82.4m. Revenue
growth continued to be driven by a 22% increase in revenues from Tysabri as well
as the launch of Ampyra earlier in the year. Adjusted EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization)
for the second quarter was impacted by reduced revenues from a number of older
legacy products, but this was more than offset by the growth in Tysabri and a
14% reduction in operating expenses.
Cooke confirmed that for the
full-year 2010. He said Elan remains on target to record revenue growth, Adjusted EBITDA
of more than $150m and operating profits before other charges or gains. He noted
also that the company generated almost $50m in cash from operations in the first
half of the year, including $23.7m generated in the second quarter, and was on
track to be cash flow positive before other charges for the full-year.
