Elan hit by restructuring costs

Restructuring costs have resulted in Elan showing a net loss of $216.2m (€167m) for the third quarter of 2012 — a period which, last year, generated net income of $3.5m.

The loss figure was driven by costs linked with the hiving off of the group’s drug discovery division, Neotope Biosciences, and impairment charges connected with the ending of research into its failed Alzheimer’s treatment bapineuzumab. Impairments and restructuring costs for the period totalled $228.6m.

Despite this, Elan’s management said the quarter saw the company benefit from continued financial momentum. Revenues increased 10%, year-on-year, to $306.6m; and rose from $797.1m to $883m for the first nine months of the year.