Elan sees Q4 revenues decline by 14%

Drugmaker Elan’s fourth quarter revenues fell by a higher-than-expected 14% on the sale of its drug delivery business, a hit it sees itself making up for through sales of multiple sclerosis drug Tysabri in 2012.

Elan, in which US group Johnson & Johnson is an 18% shareholder, said its revenue to Dec 31 fell to $271m (€206m) from $308m a year ago and was behind the $284m forecast by six analysts surveyed by Reuters.

The Dublin-based group sold its drug delivery business, Elan Drug Technologies, to US firm Alkermes in May last year in a $960m deal that cut its debt pile by two thirds at the cost of €80m in core earnings a year.

However Elan said its multiple sclerosis drug Tysabri, the blockbuster it co-markets with Biogen Idec, would drive full-year revenue to between $1.2bn and $1.25bn in 2012 versus $1.24bn in 2011 or just over $1bn ex-EDT.

Elan said last year that continued sales growth in Tysabri would lead to overall revenue growth of 15% per year over the next three to five years.

US partner Biogen reported last week that sales of Tysabri, which almost entirely accounted for Elan’s non-EDT revenue last year, rose 14% to $380m, somewhat lower than Wall Street’s expectations of around $401m.

Elan, which adds $100m to its bottom line for every 10,000 extra patients it adds to its multiple sclerosis treatment, expects to make adjusted earnings before interest, taxes, depreciation and amort-isation of at least $200m for 2012 versus $147m ex-EDT in 2011.

It said it expects to start providing funding towards its Alzheimer’s disease venture bapineuzumab in the second quarter of 2012, and sees expenses from research and development as well as selling, general and administrative spend rising to between $420m and $440m from $403m last year.

Reuters