Elan results support recovery claims

POSITIVE second quarter results from Elan have supported recent claims made by the company’s management that the business is on the road to recovery.

The Dublin-headquartered pharmaceutical company – which co-owns the global multiple sclerosis drug Tysabri and which recently sold an 18.4% equity stake to US giant, Johnson & Johnson – yesterday reported a 5% lowering in second quarter net losses for the three months to the end of June, on a year-on-year basis.

Revenue for the same period was up by 14% to just under $281 million (€198m), mainly driven by a 30% year-on-year increase in revenue from Tysabri and the company’s drug delivery business, Elan Drug Technologies.

Elan’s second quarter net losses, for this year, came in at $68.2m (compared with a $71.5m loss at the same point, last year). Its basic loss per share also improved marginally – down from 15c to 14c.

However, for the entire first half of the year, there was a net loss of $170.8m – up from $157m for the first six months of last year. Also on a half yearly basis, the company’s loss per share widened slightly from 33c to 36c. Its first half revenues increased from $460.3m to $526m.

“During the first six months of 2009, we grew revenues, added an additional approach to Alzheimer’s and successfully completed our strategic review. Our focus will remain squarely on a disciplined and continuous investment in science and advancing our diversified clinical portfolio to patients,” Elan’s chief executive, Kelly Martin, said.

The company also re-iterated its previous full-year guidance for 2009 ofdouble digit percentage growth in overall revenue and profitability on an EBITDA (earnings before interest, tax, depreciation and amortisation) basis.

Last week company chairman Kyran McLaughlin said that the board was “very optimistic” that it was at a turning point.

On the job fronts, Elan will “selectively” add to its employee base in Athlone at EDT and in its US operations. Management said that group job numbers will rise marginally, though not significantly, this year.