MS drug Tysabri boosts Elan’s revenue by 11%

Elan has reported an 11.2% year-on-year rise in first-half revenue, to $576.4 million (€474m); but came up short of market estimates in the second quarter of the year.

Revenues for the three months to the end of June were up over 6% to $288m, but missed analysts’ $299m forecasts. The Dublin-headquartered biotechnology company also reported a lowering in its second quarter net loss from $47.1m to $28.5m, with first-half net losses lowering from $74.7m to $60.3m.

Progress made was again driven by the continued “very solid” growth of multiple sclerosis treatment Tysabri which had global half year like-for-like sales growth of 8%, to $794.5m. In the second quarter the drug added 2,400 people to its user roster — its highest quarterly increase for three years — bringing its patient numbers to 69,000.

Nigel Clerkin, Elan’s chief financial officer said “significant opportunity” remains for Tysabri’s numbers to rise further, as global MS patient numbers are expected to grow to around 900,000 people by 2016. Elan is adding an average of 10,000 patients to its Tysabri roster every year.

Elan didn’t formally update its full-year financial guidance yesterday but Mr Clerkin said the previous forecast for EBITDA of at least $200m for 2012, up from $147m last year — still stands; depending on the ongoing price dispute over Tysabri in Italy being resolved during the second half. The matter had been expected to be concluded before the end of June, but is still raging.

Mr Clerkin added, however, that Elan remains in a strong financial position, with an $800m cash balance and no debt due to be paid for another four years. The company’s share price fell another 4.62%, yesterday, closing at €9.34. Management said it had “nothing to add” to Tuesday’s announcement from Pfizer regarding the failure of the first of four Phase-3 trials on Bapineuzumab; the Alzheimer’s treatment which is 25% owned by Elan.

Chief executive Kelly Martin said the company will “continue to invest time, capital and talent on neuroscience,” adding the ingredients for “significant success and patient therapeutic choice” exist for the coming years.

Mr Clerkin added that the company has no plans to sell its remaining stake in Alkermes — the New York-listed pharmaceutical company, which bought Elan’s drug delivery arm, EDT last year — saying it remains “a comfortable, happy shareholder for now”.