Elan revenue up on sales of MS drug

Better-than-expected sales of multiple sclerosis drug Tysabri boosted first-quarter revenue at Irish drug company Elan by 17% to over $288m (€218m).

The year-on-year revenue rise was driven by a strong 14% increase in sales of the drug to $399m, which was ahead of market expectations.

Tysabri now has nearly 67,000 users, worldwide, and Elan’s management is confident of doubling that number over the course of the next five years.

Elan’s chief executive Kelly Martin said the multiple sclerosis market remained “robust” and continued to expand.

It is estimated that the total number of people needing treatment for the condition will go from the current 630,000 to 800,000 by 2016 and Elan sees this being “a major growth opportunity” for Tysabri.

Mr Martin also said Elan could become a world leader in the area of neurological treatments in the coming years.

“The opportunities and patient need in the broad area of neurology are significant,” he said.

“We remain focused on the short and long-term execution of our plans and committed to extending our leadership in the area of discovery and innovation.”

The company, as a whole, also reported a first quarter operating profit of $22m; up from $18m for the same period last year.

However, the company also posted a net loss of $31.8m; down from a net profit of $68.2m 12 months ago. This turnaround, however, was chiefly down to one-off residual effects from the sale of the company’s Athlone-based drug delivery subsidiary, EDT, to US firm Alkermes.

Conversely, Elan’s decision to sell 76% of its shareholding in Alkermes during the first quarter brought in nearly $381m and substantially strengthened its balance sheet.

In the 12 months to the end of March, the company went from a debt position of $600m to a cash balance of $800m.

Management at the biotechnology company had previously forecast earnings growth of 35% for 2012, as a whole, with full-year revenues of up to $1.25bn possible. It maintained such guidance on the back of the latest quarterlies.

Speaking yesterday, Nigel Clerkin — Elan’s chief financial officer — said that “this solid start to the year places us on track to achieve our full-year financial guidance”.

Elan’s share price in Dublin was up by 1.2% yesterday, at €10.55.