Elan returns to profit with €35m in third quarter

ELAN has updated its full-year guidance to allow for a forecast of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $75 million (€50m), after it reported a switch from net loss to net profit for its third quarter.

The Dublin and Athlone-based drug-maker yesterday reported a net profit after tax, of $52.3m (€35m) for the three months to the end of September; a turnaround from a net loss of $83.5m for the same period last year. The result was aided by a $107.7m gain from selling a controlling stake in its Alzheimer’s product pipeline to J&J, which also recently completed the purchase of an 18.4% equity stake in Elan.

Adjusted EBITDA for the third quarter came in at $24m, up from a loss of $2m for the same three months last year. This turnaround was mainly due to a 12% reduction in operating expenses and a 6% year-on-year increase in overall revenue (to $287m), which in turn was helped by a good performance by Tysabri.